How much is my house worth? Working out a property value estimate yourself

"How much is my house worth?" It is the question behind every decision to sell, refinance, renovate or simply stay put. It is also a question with no single right answer — only a range that is better or worse supported by evidence.

This guide shows how to build a sound property value estimate yourself, and how to judge the estimates other people give you.

There is more than one "value"

Before asking what is my property worth, be clear which value you mean.

Market value — the price a willing buyer and willing seller would agree in a normal sale. This is what most people mean.
Municipal valuation — the value the municipality places on the property for rates. It is set at a valuation date that may be years old. See municipal valuation vs market value.
Bank valuation — the lender's cautious view of the security for a loan.
Replacement value — the cost to rebuild, used for insurance. It has nothing to do with what the property would sell for.
Asking price — what a seller hopes for.

These can differ widely for the same house. Mixing them up is the commonest source of confusion about property value.

Step 1: Establish the facts about your property

Start with what is on record:

the registered erf size. See erf size lookup;
the zoning. See zoning check;
the municipal valuation;
what the property last sold for and when. See property sales history.

Then what only you know: floor area, bedrooms and bathrooms, condition, improvements since you bought, and whether all structures have approved plans.

Step 2: Find comparable sales

The backbone of any house value estimate is what similar homes nearby have recently sold for.

Look for sales that are:

in your suburb, ideally your part of it;
within the past year;
the same type of property;
similar in erf size and house size.

A property report on checkproperty.co.za gives comparable sales and suburb statistics for a Johannesburg property, alongside its own sales history. How to select and use them is covered in comparable sales reports.

Step 3: Adjust for the differences

Take each comparable and ask how it differs from your house.

Bigger stand or house than yours? Its price overstates yours.
Renovated where yours is original? Overstates.
On a busy road where yours is quiet? Understates.
Sold eighteen months ago in a rising market? Understates.

You are not after precision. You are narrowing a range.

Step 4: Arrive at a range

After adjustment, your comparables should suggest a band — say, the lowest credible figure and the highest. Your house probably sits somewhere inside it, and where depends on condition and presentation.

Resist the pull towards the top. Owners consistently overvalue their own homes, because they count what they spent and what they love, while buyers count only what they see.

Step 5: Sense-check

Against the last sale. Does the growth since you bought look plausible for your suburb, given what you have added?
Against the municipal valuation. A large gap in either direction deserves a second look.
Against competing listings. These are asking prices, so they sit above where sales will happen — but they show what a buyer would compare your house with.
Against time on market. If similar houses are taking many months to sell, the market is telling you asking prices are too high.

What about a property value calculator?

Online tools promise an instant figure. Know what you are looking at.

An automated valuation estimates value statistically from registered sales and property attributes. It can be a reasonable guide for standard homes in suburbs with many sales. It struggles with:

unusual properties;
suburbs with few transactions;
anything not in the data — condition, renovations, a view, a problem next door.

A property value calculator is a starting point at best. Treat a single figure with no range and no evidence shown as a rough indication only.

checkproperty.co.za does not produce an automated estimate of what your house is worth. It gives you the evidence — the property's sales history, comparable sales, suburb statistics and municipal valuation — so you can see the basis for a figure yourself. The site also has investment calculators for transfer costs, bond repayments and rental yield, which work from the figures you enter.

What adds value, and what does not

Generally adds value: more usable floor area with approved plans; a sound roof and services; good security; a functional kitchen and bathrooms; a lawful second dwelling producing rent.

Adds less than it costs: highly personal finishes; over-capitalising beyond the level of the street; a pool in a market that does not want one.

Reduces value: unapproved structures; deferred maintenance; anything that complicates transfer. See unapproved structures.

Often overlooked: development potential. If your erf could be subdivided or carry more units, it may be worth more to a developer than as a house. See what can I build on my property.

House price estimate Johannesburg: local factors

Several things move value within Johannesburg more than people from elsewhere expect.

Security arrangements — enclosed suburbs, estates and access control.
Schools and their catchments.
Road access and traffic.
Reliability of services in the area.
Planning policy — land on a route earmarked for higher density carries a different value. See densification in Johannesburg.
Sectional title levies and scheme finances, for units.

Suburb-level pictures are in house prices in Sandton and Randburg and house prices in Roodepoort and Midrand.

When to pay for a professional valuation

Your own estimate is enough for deciding whether to sell and roughly at what price. Get a registered valuer when you need a figure that others must accept:

deceased estates and divorce;
disputes between co-owners;
tax and financial reporting;
a formal objection where the amount at stake justifies it.

See property valuation reports.

Frequently asked questions

Is the municipal valuation what my house is worth? No. It is a rates valuation at a past date.

Do estate agents' valuations count? An agent's opinion is a market appraisal, not a formal valuation. A good one comes with comparable sales.

How often should I check? When you are making a decision that depends on it, or when the municipality publishes a new valuation roll.

The bottom line

What your house is worth is a range supported by recent comparable sales, adjusted honestly for how your property differs. Build the range from evidence, check it from several directions, and be sceptical of any single figure offered without its workings.

See the sales evidence for your property.

This is general information, not valuation or financial advice. checkproperty.co.za provides property information compiled from public sources and does not provide valuations.