How Much Is Your Property Really Worth?

Valuation misconceptions
In the context of valuations, it is important to deal with some common misconceptions:
• Cost does not equal value. In the example of a new construction the combined sum of the land and buildings does not necessarily equal value. Many people overcapitalise in real estate and learn a hard lesson when they try to sell their property.
• Asking/selling price does not necessarily equal value. Many sellers pitch the price of their property above the market hoping to sell at a premium. When a real estate agent gives you an estimation of the worth of your property it is called an appraisal. This is distinctly different from a professional valuation because it not only takes into account comparable sales, but also undertakes an analysis of the features of the property and its attributes – providing a far more detailed analysis of the subject property.
• The market is constantly changing, and for a valuation to be relied on it must be no more than three months old.