Real Estate Investor Magazine South Africa May 2013 | Page 32

STRATEGIES

Inconsistent
Valuations

BY ANGELIQUE REDMOND

Are they creating rip-off rates?

T

he season of property valuations is
upon us and by now most homeowners
will have received their new property
valuations and had a chance to lodge their
complaints if their property had been over
valued. But does the system used by the
government for property valuations work? Or
is this system having a detrimental effect on the
property industry?
Firstly, what is a property valuation? Real
estate appraisal, property valuation or land
valuation is the process of valuing real property.
The value usually sought is the property’s market
value. Appraisals are needed because compared
to, say, corporate stock, real estate transactions
occur very infrequently. Not