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PROFESSIONAL AND INDEPENDENT PROPERTY VALUATIONS

Mirfin Valuation Services (Pty) Ltd is a nationwide and independent provider of property and asset valuations, established in 2002.

We are a certified B-BBEE level 4 service provider, recognised by all major insurers and underwriters in South Africa.

Our valuations are backed by professional indemnity insurance and are reliable under scrutiny of the regulatory, judicial and taxing authorities.

OUR SERVICES

Our countrywide property appraisals cover private homes, offices, factories, shopping centres, hotels, farms, game lodges, schools, churches and medical institutions. Mirfin is especially well known for its unrivalled sectional title insurance valuations.

With a Mirfin valuation in hand, you will be in a position to confidently contest your municipal rates, sell or let your property or simply enjoy the peace of mind that comes with knowing you’re adequately insured.

 

Our services include: 

 

  • Market price valuations - determine your property’s fair market value to be used in for all critical transactions it may be required
  • Insurance valuations - don’t get caught being underinsured or over paying on premiums
  • Body corporate valuations - assisting trustees and managing agents comply with legal requirements
  • Content valuations - ensure that your household and office assets are adequately covered to reduce claim complications
  • Risk surveys - knowing your risk profile will give you the power to negotiate a lower premium with your insurer
PROFESSIONAL PROPERTY VALUERS

The Property Valuers Profession Act governs our profession and we are legally required to be registered with the South African Council for the Property Valuers Profession (SACPVP). The act makes provision for three categories of registration:

 

  1. Professional Valuer (PV - highest level of qualification)
  2. Professional Associated Valuer (PAV)
  3. Candidate Valuer (may only work under the supervision and control of a PV or PAV)

 

Our highly experienced valuers all hold a National Diploma in Real Estate / Property Valuation (as a minimum) and are certified by the South African Council for the Property Valuers Profession (SACPVP).

We adhere to the highest ethical standards and all valuations are treated with the utmost discretion and confidentiality, in accordance with our privacy policy.

PHYSICAL VALUATIONS VS. AUTOMATED VALUATION MODEL

The automated valuation model (AVM) is a property valuation service that applies mathematical modelling to a database to calculate a property’s value by analysing historical price movements of comparable properties.

 

While AVM valuations cost less and provide a more immediate result, this service inherently suffers some crucial disadvantages:

 

  • AVM does not take into account a property's actual condition (i.e. state of repair, renovations etc.)
  • AVM assumes an average condition which may not reflect reality
  • Often there are few comparable properties and little historical data available
  • Comparable data for newly-built properties is scarce
  • Data sources may be unreliable due to concealed incentives in recorded sales prices
  • AVM does not always reflect current market conditions as the input of transactional data often lags behind real-time
  • AVM does not work well on community living schemes as aspect (e.g. north-facing) and location within the scheme can have a significant effect on value
  • AVM is wholly unsuitable for replacement cost valuations as these require a physical inspection

 

Only a professional valuation can make up for the shortcomings of an AVM.

MARKET PRICE VALUATIONS

A market price valuation determines the estimated amount a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction, after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion. Determining fair market value is helpful when buying, selling or letting a property, or when handling a deceased estate or divorce settlement.

 

There are three methods in estimating the market value of a property:

 

  1. The 'Cost' approach values a property on the basis of what it would cost to build the property today, taking into consideration the depreciation by various factors.
  2. The 'Income Capitalisation' approach considers the value of the income stream that a property generates or could generate. This method typically applies to commercial or income generating properties.
  3. The 'Comparable Sales' approach entails the analysis of recent comparable sales of physically and legally similar properties in the general vicinity of the subject property. This method typically applies to single family homes and land.

 

The valuer selects which approach - or combination of them - would be most suitable for determining fair market value, depending on the location and intended use of the property.

REPLACEMENT COST VALUATIONS

Also known as estimated new replacement cost, this determines a property's insurance value. This means the cost of replacing the building and all other permanent improvements that constitute the property, as if new, at prices applicable on the valuation date. Permanent improvements include swimming pools, tennis courts, patios, paving, terraces, driveways, paths, septic tanks, watercourses, boundary or retaining walls, drains, gates, fences, as well as water, sewerage, gas, electricity and telecommunication connections for which the owner is legally responsible.

 

Also included are the reasonable costs incurred as a result of damage. These include limiting the extent of damage, fire brigade charges, architects, quantity surveyors, consulting engineer fees, demolition, construction and complying with the requirements of any local or regional authority. Excluded are earthen walls, earthen driveways or earthen structures, plants, trees, dam walls, piers, jetties, bridges and culverts, as well as financing fees and loss of revenue, e.g. when letting the damaged property.

 

Replacement cost is estimated by researching the current construction cost per square metre in the locality, as construction costs can vary vastly between geographical locations. It must be assumed tenders would be called for from suitable contractors and impartially awarded.

 

Apart from the cost of construction, the building rate per square metre includes the cost of additional building services such as electrical installations, electronic installations and fire protection installations. The valuer will quantify costs for site improvements, demolition and rubble removal, professional fees, Value Added Tax (VAT) and any future escalation separately.

OUR COMPANY

PROFESSIONAL AND INDEPENDENT PROPERTY VALUATIONS

Mirfin Valuation Services (Pty) Ltd is a nationwide and independent provider of property and asset valuations, established in 2002.

We are a certified B-BBEE level 4 service provider, recognised by all major insurers and underwriters in South Africa.

Our valuations are backed by professional indemnity insurance and are reliable under scrutiny of the regulatory, judicial and taxing authorities.

OUR SERVICES

Our countrywide property appraisals cover private homes, offices, factories, shopping centres, hotels, farms, game lodges, schools, churches and medical institutions. Mirfin is especially well known for its unrivalled sectional title insurance valuations.

With a Mirfin valuation in hand, you will be in a position to confidently contest your municipal rates, sell or let your property or simply enjoy the peace of mind that comes with knowing you’re adequately insured.

 

Our services include: 

 

  • Market price valuations - determine your property’s fair market value to be used in for all critical transactions it may be required
  • Insurance valuations - don’t get caught being underinsured or over paying on premiums
  • Body corporate valuations - assisting trustees and managing agents comply with legal requirements
  • Content valuations - ensure that your household and office assets are adequately covered to reduce claim complications
  • Risk surveys - knowing your risk profile will give you the power to negotiate a lower premium with your insurer

OUR VALUERS

PROFESSIONAL PROPERTY VALUERS

The Property Valuers Profession Act governs our profession and we are legally required to be registered with the South African Council for the Property Valuers Profession (SACPVP). The act makes provision for three categories of registration:

 

  1. Professional Valuer (PV - highest level of qualification)
  2. Professional Associated Valuer (PAV)
  3. Candidate Valuer (may only work under the supervision and control of a PV or PAV)

 

Our highly experienced valuers all hold a National Diploma in Real Estate / Property Valuation (as a minimum) and are certified by the South African Council for the Property Valuers Profession (SACPVP).

We adhere to the highest ethical standards and all valuations are treated with the utmost discretion and confidentiality, in accordance with our privacy policy.

PHYSICAL VALUATIONS VS. AUTOMATED VALUATION MODEL

The automated valuation model (AVM) is a property valuation service that applies mathematical modelling to a database to calculate a property’s value by analysing historical price movements of comparable properties.

 

While AVM valuations cost less and provide a more immediate result, this service inherently suffers some crucial disadvantages:

 

  • AVM does not take into account a property's actual condition (i.e. state of repair, renovations etc.)
  • AVM assumes an average condition which may not reflect reality
  • Often there are few comparable properties and little historical data available
  • Comparable data for newly-built properties is scarce
  • Data sources may be unreliable due to concealed incentives in recorded sales prices
  • AVM does not always reflect current market conditions as the input of transactional data often lags behind real-time
  • AVM does not work well on community living schemes as aspect (e.g. north-facing) and location within the scheme can have a significant effect on value
  • AVM is wholly unsuitable for replacement cost valuations as these require a physical inspection

 

Only a professional valuation can make up for the shortcomings of an AVM.

VALUATION METHODS

MARKET PRICE VALUATIONS

A market price valuation determines the estimated amount a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction, after proper marketing where the parties had each acted knowledgeably, prudently and without compulsion. Determining fair market value is helpful when buying, selling or letting a property, or when handling a deceased estate or divorce settlement.

 

There are three methods in estimating the market value of a property:

 

  1. The 'Cost' approach values a property on the basis of what it would cost to build the property today, taking into consideration the depreciation by various factors.
  2. The 'Income Capitalisation' approach considers the value of the income stream that a property generates or could generate. This method typically applies to commercial or income generating properties.
  3. The 'Comparable Sales' approach entails the analysis of recent comparable sales of physically and legally similar properties in the general vicinity of the subject property. This method typically applies to single family homes and land.

 

The valuer selects which approach - or combination of them - would be most suitable for determining fair market value, depending on the location and intended use of the property.

REPLACEMENT COST VALUATIONS

Also known as estimated new replacement cost, this determines a property's insurance value. This means the cost of replacing the building and all other permanent improvements that constitute the property, as if new, at prices applicable on the valuation date. Permanent improvements include swimming pools, tennis courts, patios, paving, terraces, driveways, paths, septic tanks, watercourses, boundary or retaining walls, drains, gates, fences, as well as water, sewerage, gas, electricity and telecommunication connections for which the owner is legally responsible.

 

Also included are the reasonable costs incurred as a result of damage. These include limiting the extent of damage, fire brigade charges, architects, quantity surveyors, consulting engineer fees, demolition, construction and complying with the requirements of any local or regional authority. Excluded are earthen walls, earthen driveways or earthen structures, plants, trees, dam walls, piers, jetties, bridges and culverts, as well as financing fees and loss of revenue, e.g. when letting the damaged property.

 

Replacement cost is estimated by researching the current construction cost per square metre in the locality, as construction costs can vary vastly between geographical locations. It must be assumed tenders would be called for from suitable contractors and impartially awarded.

 

Apart from the cost of construction, the building rate per square metre includes the cost of additional building services such as electrical installations, electronic installations and fire protection installations. The valuer will quantify costs for site improvements, demolition and rubble removal, professional fees, Value Added Tax (VAT) and any future escalation separately.