There’s Actually More to Property Valuation than You Thought

One evening, I was at the living area just scrolling through some chats. Ama was sitting next to me whilst on the phone with Adwoa. I was trying so hard to mind my business. However, I could not help but eavesdrop on their conversation.

The conversation was actually about selling property. Ama was advising Adwoa to hire the services of a valuer in order to determine the value of the property. She told her of how it would aid in arriving at an accurate value before placing the property on the market. Adwoa was quite dismissive of the idea. These were the exact words of Adwoa: “valuers would just chop your money”. Adwoa’s reason was that she could just come up with a value herself and that was how her brother always sold his properties. She believed that the services of a valuer were irrelevant.

Now I was very surprised at her response. However, I could not judge her because not everyone appreciates how valuation is germane to determining the accurate value of property.

Valuation is an art and a science. Valuers do not just conjure up figures. There are so many factors which are taken into consideration before arriving at a value.

Some of these factors include:

1.Location of the property

Properties located in prime areas usually have higher values. In Accra, these prime areas include Cantonments, Airport and Roman Ridge.

2.Constructional details

This entails materials that have been used to construct the building and building finishes. The valuer takes note of floors, doors, windows, roof etc. A house with floors made of tiles would attract a higher value than that of terrazzo.

3.Access to social amenities

The property’s access to water, electricity, malls and well tarred roads are also very important to value estimation.

4.Improvements on the property

The valuer also considers extra features added to the property such as a swimming pool, a well-manicured garden, alternative sources of water and just to mention a few.

5.Condition of the property

The condition of the property is a key aspect of value estimation. The property’s state of maintenance and condition is taken into consideration. One would have to consider leakages, cracks in the building etc.

All the factors mentioned above influence the value of a property. So why would you not want to hire a valuer to get the accurate estimation of your property’s value?

After all, you just need to pay them a fee which constitutes 10% of the purchase price. 

You might end up underpricing or overpricing your property if you decide to just come up with a price off the top of your head. This is a risk you might not want to take.

About the Author

Afua Appiah-Adu is a graduate of Law from the BPP University, UK. She also holds a BSc degree in Land Economy. Afua is passionate about property law and educating society.

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