Property Market Asking Prices

[Ezee]

Hi All

I was wondering, if you guys can shed some more light.

My sibling is trying to enter the SA property market, looking at his first property. So have been assisting with some research, and going to view few properties. Boi!!! I have been out of touch with the property market for a very long time since taking ownership 7years ago.

Questions below:
Sellers are selling way more than what the property is valued at.
e.g. Saw a property valued at R990 and asking price at R1.4m and the agent adding some side input that we can atleast try offer R1.250 for sellers to atleast consider.

So far 7 properties and have not found any seller selling close to their market value.

Or times have changed? Does anyone still find properties even being sold below market value or do agents add up their niks to make as much profit as possible??

Perhaps auctions or buying land and dealing the stress of building might be an added value in years to come.

::at this rate, i might just have to sell my 2nd bathroom for R1m soon.

Thanks for any input.

 

[ajv]

Very much area dependant I believe.

Where I'm staying the houses that are reasonably priced sells within a week (bit of a boom here). If you're not in a hurry to sell you can definitely up the price quite a bit as these properties still sell. It just takes longer.

Do you find that these overpriced properties you're looking at still sell ? If so, then that's the market value

I've been keeping an eye on a property in a neighbourhood that's not really hot right now. The place is overpriced and have been in the market for at least 9 months. I'm waiting till the middle of winter (traditionally a slow time of the year here) to make them a very low offer.

The old saying holds true:
Any object is (only) worth what someone else is willing to pay for it.

 

[Billy]

Where are you getting your "Market Value" figures from?

What area are you looking at?

 

[noxibox]

Where are you getting this value that you're comparing against?

 

[ToxicBunny]

If you're looking at the municipal valuations, they're not very accurate in most places atm...

But in saying that, yes, most people do initially overprice their property... Hell I would do it to, just so that after negotiation, I can get the price I want.

 

[R13...]

If you're looking at the municipal valuations, they're not very accurate in most places atm...

But in saying that, yes, most people do initially overprice their property... Hell I would do it to, just so that after negotiation, I can get the price I want.

But if anything municipalities overvalue properties (which of course helps them rape you on rates). And when you object they just ignore you. PMB at least. Most. Useless. Municipality. Ever. I will never buy property there again.

 

[ToxicBunny]

But if anything municipalities overvalue properties (which of course help rape you on rates). And when you object they just ignore you. PMB at least. Most. Useless. Municipality. Ever. I will never buy property there again.

My property is undervalued by the municipality.. granted by only R50k or so, but its still undervalued.

 

[Ezee]

Very much area dependant I believe.

Where I'm staying the houses that are reasonably priced sells within a week (bit of a boom here). If you're not in a hurry to sell you can definitely up the price quite a bit as these properties still sell. It just takes longer.

Do you find that these overpriced properties you're looking at still sell ? If so, then that's the market value

I've been keeping an eye on a property in a neighbourhood that's not really hot right now. The place is overpriced and have been in the market for at least 9 months. I'm waiting till the middle of winter (traditionally a slow time of the year here) to make them a very low offer.

The old saying holds true:
Any object is (only) worth what someone else is willing to pay for it.

Yes funny enough the property just got sold after 5months, but for way low. R1.150m

 

[R13...]

My property is undervalued by the municipality.. granted by only R50k or so, but its still undervalued.

That then sounds like fair value. You can't have an exact value. My property was overvalued by 250K. Properties in the area were nowhere near what the municipality was valuing at. Their excuse was that people don't let them onto their property, but you should see the person they send to take valuation info. I think they use the people who do the census.

 

[Ezee]

Where are you getting your "Market Value" figures from?

What area are you looking at?

Getting them from municipality. so these are incorrect? Is there a difference between the municipal value and the value i would get from http://propiq.property24.com/

We looked at 2 different areas in different provinces.

1st - western cape table view
2nd - gauteng edenvale

But he is leaning towards buying in gauteng, as he will be running his business full time there.

 

[Ezee]

Where are you getting this value that you're comparing against?

Municipal value

 

[Billy]

The property valuation sites use the latest sales prices in an area to calculate the property values, and will be far more accurate than the Municipal valuation.

The Municipal valuations are usually between two and seven years old. It takes a couple of years from an actual valuation until the valuation is published, and that is valid till the next one five years later.

A valuation is made of a property in an area, and then all the other properties are valued pro-rata from aerial photos. My previous house was the lowest Municipal Value in the road as it was double storey.

As property prices generally increase, the Municipal valuation is usually lower than actual prices being paid.

If the Municipal valuation is higher than prices being paid, the area is probably in decline. Stay away!

If you are interested in an area, buy a report. The Agents know the figures for their area and it gives you an advantage to know what other properties have sold for.

 

[Ezee]

Thanks

 

[Skywalker786]

Ezee, if you are looking at a standard run of the mill home, to get a average idea on pricing take a look either at the Saturday Star, Property 24, IOL etc. I would not suggest municipal valuations.

Drop me a PM if you have any further questions.

 

[hellfire]

Municipal value

There's a company called Lightstone that sells property reports.
Buy one (it's around R70) for a property on which you want to put an offer.
The report gives you some cool information like:
ERF number/s
Current owner, and previous owners
Last few transactions on the property (transfer dates and prices)
Low, mid, and high expected values
Other recent sales (and their addresses) in the same area

 

[Mila]

Property in SA is way over priced.

Google Barberton... Wtf is up with property prices in that town? Jeepers.

 

[Billy]

What about Pofadder?

http://www.property24.com/for-sale/pofadder/northern-cape/538

 

[chrisc]

I bought both my daughters flats and they paid me back. One still has her flat, it has increased in price some 80% since 2004, the other sold her flat for a small profit and bought a house, which she rents out.

Flats are generally better value and of course, maintenance is minimal, although you pay a levy and rates. One one flat is in Disa Park in Vredehoek, worth about R1m and the levy is R 1120, rates R350. Another flat is in Plumstead, worth about R750k, the levy R935 and rates R230

 

[Ezee]

Appreciate the inputs!!

 

[Ezee]

Property in SA is way over priced.

Google Barberton... Wtf is up with property prices in that town? Jeepers.

Barbeton seems pricey. Not sure why..