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Written by: Mandisa Ndlovu
Property valuations play an important role in determining a property’s fair market value. With the assistance of valuations, buyers, sellers, and financial institutions can ensure they have an unbiased and clear idea of a property’s value. Despite its significance, the profession is surrounded by several myths, which cause misunderstandings and uncertainty. These misconceptions have the potential to severely impact investment decisions and undervalue the important work that Property Valuers perform.
Myth 1: Property Valuers and Real Estate Agents perform the same work
People frequently assume Real Estate Agents and Property Valuers perform the same work. Despite working in the property industry, they have different responsibilities. Professionals with training in property valuation offer objective assessments of a property’s worth based on several factors, including location, condition, and market trends. On the other hand, because they may receive a commission, a Real Estate Agent who represents both the buyer and seller may provide a more positive valuation.
Click here to read our blog post on the difference between a Professional Property Valuer and an Estate Agent.
Myth 2: Property Valuations are only necessary when buying or selling
Many people believe property valuations are only necessary when buying or selling a property, however, that is not the case. One can acquire a property valuation to refinance a mortgage, make informed investment decisions, and settle legal disputes. Regular valuations can also help homeowners understand their property’s value over time and make strategic decisions about renovations or improvements.
Myth 3: All home renovations can increase property value
While some renovations can have the potential to increase market value, not all of them do, and some may even provide a poor return on investment. For instance, highly customised upgrades, including unique luxurious features that meet very specific tastes, may not be appealing to many prospective buyers. In the same manner, over-improving a home in comparison to other houses in the neighbourhood may lead to decreasing returns if the expense of the improvements outweighs the value they add.
By debunking these common myths, we hope to provide a clearer picture of the expertise and importance of Property Valuers. Feel free to reach out to our team for any of your property valuation needs. We’re here to help you make informed and confident decisions!
