Understanding Property Valuations in South Africa: What Every Seller Needs to Know

Setting the right price for your home starts with understanding the different types of property valuations available in South Africa. From the Comparative Market Assessment (CMA) your estate agent prepares, to the formal report issued by a Registered Property Valuer, through to bank appraisals, municipal valuations, and even the rise of AI-driven valuation tools—each method offers its own purpose, level of accuracy, and influence on the final selling price.

Estate Agent Comparative Market Assessment / Analysis

Estate agents who are registered with the Property Practitioners Regulatory Authority (PPRA) can provide homeowners with a comparative market analysis, which is typically based on:

• Recent sales of similar homes
• Property features and location
• Current market trends

In addition, and critical to this process, an estate agent brings industry experience and a wealth of local knowledge about neighbourhood and suburban trends that influence price. Typically, this type of property valuation is a free service to sellers and is usually the best guide to a realistic asking price at which to list your home for sale.

Registered Property Valuer’s Report

A property valuer’s report can only be issued after a valuation conducted by a professional who is registered with the South African Council for the Property Valuers Profession (SACPVP). These are formal, legally recognised valuations based on regulated methodologies and are most often used in contractual and/or legal matters, for example, home loan applications (banks), divorce settlements or for valuations in relation to a deceased estate, as well as for tax, insurance and investment purposes. This type of report can also be required if you want to object to a municipal valuation (discussed in more detail below).

Because this type of valuation is conducted by qualified and registered professionals within a regulated framework, it is the most authoritative valuation, but often comes at a hefty fee.

Bank Appraisal / Appraisal Value

Because banks must verify the value of a property, when you apply for a bond or home loan, and as part of their screening process, they will send an official to appraise your property. These employees are qualified valuers who are also usually registered with the SACPVP. In other words, these valuations

• Are part of a mortgage lender’s risk management process
• Ensures the property is worth the amount being borrowed (bonded)
• Are often less than market valuations

Municipal valuations

By law, every municipality in the country must conduct a general property valuation every five or so years. In 2025, most of South Africa’s major metros went through this process, and once the valuation roll is published, homeowners who disagree with a municipal property valuation may object. The following points are important to bear in mind about the municipal valuation process:

• They are conducted by officials appointed by your local municipality, and you have the right to verify their identities when they come to your door
• Municipalities may only use these property valuations to support the calculation of property rates and taxes
• Because they are not updated regularly, the municipal value of your property can often be very different from the current market price
• Bearing the above point in mind, a municipal valuation would generally not indicate an appropriate price for selling your property, so it’s advisable to approach your local REMAX office for a more up-to-date, obligation-free market assessment of your home.

AI and property valuations

AI has been one of the buzzwords of 2025, and it’s no different for property valuations. Banks, municipalities, and property insurers are all increasingly using Automated Valuation Models (AVMs). These are computer-driven tools that quickly and objectively estimate property values, using large datasets and statistical modelling. The algorithms draw on data from sales, property characteristics and market trends to calculate property values.

A word of caution:

Like many large, automated data-driven models, AVMs need vast volumes of data, and if those data are not available, the results will be inaccurate. This means that they’re likely to produce the best results in urban areas where there are many good records, as opposed to rural areas where there are fewer property transactions and potentially poor historical records.

Also, do bear in mind that because this type of valuation does not include an in-person visit to a property, its condition, any renovations and/or defects cannot be considered. Similarly, local knowledge about trends, amenities and other factors is not always factored in. This is why banks and insurance companies often also insist on physical valuations to corroborate the AVM’s output.

Common misconceptions associated with property valuations

There are some things to bear in mind when you look at, or ask for, a property valuation:

• Prettying up and renovating your property can add appeal, but buyers pay for perceived value and will not consider your input costs. Make sure that any work will appeal to buyers, and is to standard, without over-capitalising.
• Remember that banks are traditionally conservative and risk-averse. This underpins their valuations rather than maximising your selling price.
• Online tools are helpful starting points, but are unlikely to yield an accurate value because they can’t “see” your property to assess how you’ve maintained, renovated or upgraded it. More importantly, online tools totally miss the unique neighbourhood vibe.
• Because your neighbour got a good price does not automatically mean that your house will, too. This is because houses are different in terms of layout, condition, aspect (sun exposure), curb appeal and/or views.
• Market value does not equate to replacement value: market value is the price that a buyer is willing to pay, while the replacement value – for insurance purposes – is the likely cost of rebuilding the house to the same specification.

With these points in mind, let’s compare what registered valuers and estate agents bring to the party:

With the above in mind, “For the best chance of securing a sale at full asking price, homeowners should always use a real estate professional who can provide an accurate assessment of the property’s value, instead of attempting to determine an asking price on their own,” advises Adrian Goslett, REMAX Southern Africa.

Selling your home is one of the biggest financial decisions you’ll make. Understanding the different types of valuations helps you set realistic expectations and avoid costly mistakes. If you’re considering selling in the near future, contact your local RE/MAX office for a valuation and how best to prepare your property for listing.