A Market Value is determined by analysing and comparing sale prices of similar properties in the area – remembering that the sale prices are of properties which have been sold – not those still on the market.
A Replacement Cost is the cost to you to rebuild your house at present day building costs with additions: such as driveways, swimming pool, garden walls and security system.
In establishing an Insurance Value a similar procedure is adopted as for determining the replacement costs of your home. This value is an estimate of the cost of rebuilding your home allowing for escalations in materials and labour costs, standard up to one year ahead.
Municipal value is determined by the local municipality taking into consideration the value of the stand and the dwelling thereon. This is often based on a scientific formula and is not necessarily accurate as the correct size, condition and quality of improvements to the property, if any, are generally not known. Exception to the rule being sectional title properties which is determined on square metres and a pro rata % of the stand.
THERE IS ONLY ONE VALUE WHEN SELLING ……
THIS IS DETERMINED BY WHAT
A BUYER IS WILLING TO PAY
IN TODAYS MARKET