2018 General Valuation Roll: How do they actually value your property

2 Mar 2018
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The 2018 City of Johannesburg General Valuation Roll is out and open for inspection by affected property owners. If you want understand the method followed by the city to value your property, the following text might be useful.

It’s taken from the City of Johannesburg’s Frequently Asked Questions

How does the City Value your property?​

The purpose of the valuation project is to determine a market value of all properties, which implies the most probable price that a property would realise on the date of valuation, if sold on the open market by a willing seller to a willing buyer.

There are several types of properties in the municipality – residential, sectional title, non- residential and agriculture. Each is valued on different basis, although they all relate to the market value. For example, residential property (including sectional titles) is valued on a comparable sales method. Most commercial property (including retail, offices, warehousing) are valued on an income basis, while institutional properties such as schools, hospitals and clinics are valued on a cost basis.

When valuing the properties, the Municipal Valuer establishes the market conditions, and this is based on recent sales and market information activity in the various areas. Therefore this will take into consideration areas where values have declined, increased or remained stagnant due to the current state of the economy as on the Valuation date.

Did the city inspect your property?​

As this is a mass valuation, the Municipal Valuer uses a computer aided mass appraisal (CAMA) system to determine the values of all properties. This is based on statistical analysis and geographical information systems (GIS), and therefore requires reliable and accurate data.

For residential property, obtaining access to all properties is not possible, and as such, the Municipal Valuer makes use of advanced technology that allows the collection of data. This includes the use of building plans and Pictometry, which is the state of the art 3D aerial photography that allows the valuers to see the properties from all angles, and be able to measure the extents and heights of the buildings, as well as other information relating to quality, condition and other improvements.

This is augmented by the use of street level video footage which is collected by driving down each street and recording the street frontages. This method is acceptable in terms of the MPRA, and endorsed by the International Association of Assessing Officers (IAAO) the international body that sets standards to mass appraisal importantly endorses more.

However, in cases where the aerial photography and other imagery is not useable, usually in the cases where properties have a lot of foliage, or high security walls, then physical inspection of the site is undertaken.

The data collection process is independently reviewed for quality assurance purposes to ensure the data collectors are consistent in their approach and the data they record is correct for the subject property.

For non-residential properties, field visits are undertaken to obtain data such as the property use, rentals and financial records of businesses.

info@probonomatters.co.za

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