A guide to some commonly asked questions regarding the property valuations and things you may wish to be aware of:
My municipal property valuation has gone up by 25%, will my rates also increase by 25%?
Municipal valuations are based entirely on current market value at the date of valuation and are entirely independent of rates. Though the valuation amount is used to calculate the rates payable, it is the BUDGET that determines the fee you pay and the annual increase. So, just because your valuation has increased by 25% does not necessarily mean that your rates will increase 25% as the two are not directly proportionate. Furthermore, objections should NOT be based on rates increases.
My neighbour’s property was valued less than mine and mine is smaller than theirs, can I object?
You cannot object based on the value of other property values in the valuation roll. An objection can be raised against a municipal valuation if the market price differs materially from the of the municipal valuation. A private valuation must then be obtained (from an estate agent or professional valuer) and presented to the municipality with the objection form. Comparable sales should be included in this valuation.
If I object, could my valuation go up?
Yes! If you object to your municipal valuation and the valuer determines that he/she undervalued the property initially, an increase in the valuation may be justified. Also, if the objection is found to be frivolous, the objector may be liable for costs. Do not object if your valuation is aligned with market values. You may wish to object if your valuation is too low if you intend to sell or apply for a bond as municipal valuations are considered in these transactions.
Additional Information available for DOCRRA Members?
For more information like this, a full legal opinion, as well as Lightstone property valuations, are available for DOCRRA members only, by emailing admin@docrra.co.za.
If you are not a current DOCRRA member, and you would like access, please join by following the link below:
https://docrra.co.za/membership/#registration.
What has your property valuation experience been like?
Let us know by completing our survey. Click on the link below:
NOTE: Deadline for the Survey is Tuesday 6 April 2021, allowing time for us to analyze the feedback received.