THE R10 000-00 PER SQUARE METRE MYTH...

PUBLISHED 19 FEB 2019   

It has been years in the making, and has created a skewed view of the true value of properties in Woodland Hills Wildlife Estate - the idea that properties should sell for no more than R10 000-00 per square metre.

 

Yes, it is true that averages provide a broad guideline as to whether a property is offered at a market related, inflated or bargain price.  However, the tendency to determine the value of any property purely based on an average price per square metre, disregards important factors that directly impact the value of any property, such as age and decor; type of accommodation offered (in relation to the size of the property); condition; location; quality and style of finishes.

 

Would you not consider it fair to pay less for an older property that does not reflect current decor trends, lifestyle requirements and neatness, than you would for a property that reflects current decor and lifestyle trends and which is offered in mint condition?

 

To determine the market value of a property, the comparative market analysis is a tried and tested method used by Estate Agents who are knowledgable in a specific area.  A comparative market analysis combines information on recent sales of comparable properties; the impact of the economy on price, time on market and affordability; competition in the market; and the specific characteristics of the property under evaluation, to determine the price bracket within which the property is likely to be sold.

 

Buyers and sellers are advised to employ the services of a knowledgable Estate Agent to guide their buying or selling experience. Do not lose the ideal property over a misconception that properties should sell for an average of R10 000-00 per square metre. Just as a dress or suit from a well-known designer would be noticeably more expensive than a similar item purchased from a well-known chain store; similarly a higher quality property should sell at a higher price than one that is of lesser quality, or that has been neglected, or that does not reflect current trends.

 

Properties situated in Woodland Hills Wildlife Estate are of varied style, size and accommodation, age, condition and quality. Therefore, the tendency to value properties purely based on an average price per square metre, does a serious disservice to property owners and buyers.  

 

For guidance on the market value of your Woodland Hills property, or buyers' price counselling, call Retha on 0834510511 or e-mail retha@rethavanzylrealestate.co.za