CERTIFIED PROPERTY VALUATIONS

With continuous changes in the property market, it is quite possible for different parties (for example, estate agents or financiers) to assign different values to your property. By using a professional and certified Valuer, you can be assured of an independent, objective and accurately researched valuation of your immovable assets.

What is Market Value (MV):

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion (‘RICS Valuation – Global Standards 2017’).

Three widely used Valuation Approaches and Methods to determine Market Value (MV):

Comparable Sales Approach:
The most frequently-used and accepted approach to determining value in real estate appraisal practice is the sales comparison approach. This approach to value bases its opinion of value on what similar properties (otherwise known as “comparables”, or “comps”) in the vicinity have sold for recently. These properties are adjusted for time, acreage, size, amenities, etc. as compared to the property that is being valued. Understanding which (and to what extent) adjustments are reasonable for a given market area (for a given property) relies on the experience of the Valuer. A property characteristic that is highly valued in one neighbourhood may not be valued to the same degree in a different area.

Depreciated Replacement Cost Approach:
Depreciated Replacement Cost (DRC) is a method of valuation which is based on an estimate of the current market value of land for its existing use plus the current gross replacement (or reproduction) costs of improvements less allowances for physical deterioration and all relevant forms of obsolescence and optimization.

Income Capitalisation Approach:
The net normalised income of the property is determined based on the assumption that the property is fully let at open market rentals; market escalation applies and incurs market related operating cost. The net normalised income is then capitalised into perpetuity using a market related capitalisation rate to reflect the open market value.

VALUATIONS FOR SELLING PROPERTY

When selling a property, the common practice is to have your property assessed by real estate agents to determine the ‘marketing price’. This marketing price figure includes agents commission as well as room for negotiation to reach a final selling price. The estate agent’s opinion of value or marketing price is an informal estimation of price and which has no legal standing.

Proco Valuers provides professional and methodically motivated valuations to the determine the actual market value of the property on a certain date with no extra factors like estate agents commission and negotiation added on top of the final value. Proco Valuers also carries ‘professional indemnity insurance’ giving clients peace of mind knowing that potential valuation losses, disputes or errors are covered by our indemnity.

VALUATIONS FOR FINANCING AND COLLATERAL

Business owners, companies and various other entities will require financing relating to their respective industry. To secure these types of financing and offering the collateral, Proco Valuers will assist in valuing the client’s immovable property which will be linked to the financing and collateral.

VALUATIONS FOR REPLACEMENT COST

Immovable property can be owned without having it insured. However, this is not recommended and in case of a fire or a natural disaster or unforeseen circumstances, you will have no recourse to have your damaged property re-instated to its previous condition without adequate insurance cover. Finance lenders to mortgaged properties require that you have your investment insured in case of these scenarios to protect your valuable asset, but it is a common trend to have all properties, irrespective if it is mortgaged, insured to its market related replacement cost.

We are certified to professionally appraise and value:

Commercial & Industrial property

Valuation services: Market Price and Replacement Cost
Retail | Offices | Industrial | Specialised properties

Agricultural property

Valuation services: Market Price and Replacement Cost
Farms | Smallholdings

Residential property

Valuation services: Market Price and Replacement Cost
Freehold | Sectional title | Residential estates | Land valuations | Development land

Special properties

Quick estimate valuation

While we strongly recommend an in-depth and complete valuation, which would include a site visit, we are also able to provide a Quick Estimate Valuation without a physical property inspection. In instances where a Quick Estimate Valuation may meet our client’s needs, we draw data from reputable property data companies who are specialists in analysing the current property market, property sales and trends.

Please note that the Quick Estimate Valuation is a statistical figure and should be regarded only as a guideline or approximate indicator of value, based on similar properties in your area. We strongly recommend that a complete and detailed valuation be conducted before making buy, sell or investment decisions.

We also offer various associated consulting services including:

Building control
Building loan consulting
Home inspections
Property sourcing for buying, selling, letting, renting
Architectural consulting

If you need an accurate valuation on your property, you can count on Proco Valuers for a professional and certified valuation.

INDEPENDENT PROPERTY VALUATIONS

Proco Valuers is an entirely independent firm of professional Valuers who are not associated with any financial institution of property services business. We evaluate property in accordance with the professional guidelines, tools and methodologies as prescribed by the South African Council for the Property Valuers Profession (SACPVP) and the South African Institute of Valuers (SAIV).

Our property valuation services extend throughout the Western Cape, Eastern Cape and KwaZulu Natal.