PRICE OF PROPERTY VALUATIONS
The cost of a property valuation is dependent on the value of the property, and works on a sliding scale. Sometimes the fee can be based on an hourly rate, depending on the nature of the valuation. Depending on what you need the property valuation for, you may want to get a free property valuation from a reputable estate agent or two (we can direct you to agents in the Garden Route if you do not know any).
Property Appraisal (Sworn Appraisal) Fees (click title to jump to bottom of page)
Property Appraisals are valuations completed by Court Appointed Appraisers specifically for deceased estates only and have a separate sliding scale in terms of the Administration of Estates Act. Court Appointed Appraisers may only value in their area of registration, unless there are no other appointed appraisers in another area. Either click on the heading above to just to the latest fees or scroll down to “PROPERTY APPRAISAL (SWORN APPRAISAL) FEES” at the bottom of the page. For all other valuations continue reading.
Professional Property Valuation Fees
A professional property valuation usually includes a fully motivated property valuation report with related supporting evidence and required documentation. Below is the recommended tariff from the South African Council for the Property Valuers Profession. It should be noted that, depending on the type, the amount of work involved, and the purpose of the property valuation, the fee is often negotiable, sometimes substantially. The main section to look at here is 1.1, which is what most professional valuers base their fee structures on. If you require a professional property valuation, these are the fee structures (in the government gazette in 2010 and have not been amended since, so these are the current fees):
SACPVP GUIDELINE PROFESSIONAL FEES
Effective 01 October 2010 to Present
(i) The fees that a registered person may charge include an ad valorem fee, as well as charges for time, travelling, accommodation costs and other actual expenditure.
(ii) All valuations must be fully motivated unless specifically otherwise instructed by the client and the time spent drafting such report should be charged in terms of paragraph 2.0.
(iii) The fees do not include value added tax or any other tax which may be imposed by the Government.
(iv) Registered persons must ensure that their instructions regarding valuations are clearly defined.
1.0 PROFESSIONAL FEES FOR VALUATIONS
1.1 AD VALOREM TARIFF – Proposed figures
NOTE: The ad valorem fees include time spent inspecting the subject property.
|Value of Property||Basic Tariff||Additional to Basic Tariff|
|Up to R50 000||R500|
|From R50 000 to R150 000||R500||R15 per R1 000 over R50 000|
|From R150 000 to R350 000||R2 000||R10,00 per R1 000 over R150 000|
|From R350 000 to R500 000||R4 000||R8,00 per R1 000 over R350 000|
|From R500 000 to R750 000||R5 200||R6,00 per R1 000 over R500 000|
|From R750 000 to R1 000 000||R6 700||R4,00 per R1 000 over R750 000|
|From R1 000 000 to R5 000 000||R7 700||R1,50 per R1 000 over R1 000 000|
|From R5 000 000 to R10 000 000||R13 700||R1,40 per R1 000 over R5 000 000|
|From R10 000 000 to R25 000 000||R20 700||R1,20 per R1 000 over R10 000 000|
|From R25 000 000 to R50 000 000||R38 700||R0,70 per R1 000 over R25 000 000|
|From R50 000 000 to R100 000 000||R56 200||R0,40 per R1 000 over R50 000 000|
|Over R100 000 000||R76 200||R0,20 per R1 000 over R100 000 000|
1.2 WHERE MORE THAN ONE VALUATION IS REQUIRED
Where a client requires more than one value for a property (eg market value and insurance value) an additional charge of 30% of the fee for the first valuation is suggested in respect of the second valuation.
1.3 WHERE PRESCRIBED FORMS ARE REQUIRED
Where a client requires the completion of specific forms in addition to the valuation, the applicable fee may be increased by 25%, subject to a maximum increase of R250,00 per property.
1.4 CONTINUOUS AND SEPARATE VALUATIONS
Where a client instructs a registered person, in one instruction, to prepare continuous valuations, the registered person may charge a fee based upon the total of the continuous valuation at the relevant tariff fee.
Continuous valuation means the valuation of two or more properties having similar attributes.
Where a registered person is instructed to revalue a property which he or she has valued within the preceding period of 12 months, and the property or the interest therein has not changed materially since the first valuation, the fee should be reduced by 50%.
1.6 SECTIONAL TITLE UNITS
For the valuation of sectional title units, the rate set out in 2.1 for investigation should be charged in addition to the ad valorem tariff fee.
1.7 “BEFORE AND AFTER” VALUATIONS
When instructed to prepare two valuations, such as “before and after”, of a single property, a registered person may charge for each of the valuations separately in terms of 1.1, provided that where the work involved in preparing the second valuation does not amount to performance of a completely separate valuation, the registered person should charge in terms of 1.1 on the higher of the two valuations only.
1.8 VALUATION OF PART OF A PROPERTY
Where a registered person is required to value a portion of, or an undivided share in, a property and it is necessary to value the whole property in order to determine the value of the part, or the share, the fee may be based on the value of the whole property.
2.0 TIME CHARGE
2.1 The guideline charges per hour, or part thereof, are as follows:
2.1.1 Professional Valuer
With more than 10 years experience: R1 600
With less than 10 years experience: R1 300
2.1.2 Professional Associated Valuer
With more than 10 years experience: R 1 300
With less than 10 years experience: R 1 100
2.1.3 Candidate Valuer
With the prescribed or a recognised academic qualification: R 650
Without the prescribed or a recognised academic qualification
More than 3 years practical experience: R 550
1-3 years practical experience: R 450
2.2 ALTERNATIVE TO AD VALOREM TARIFF
A registered person may charge for a valuation at the fee as set out in 2.1, provided that the resultant fee should not be less than the fee calculated in terms of 1.1.
2.3 ADDITIONAL TO AD VALOREM TARIFF
For market research, Deeds Office searches or other investigations, a registered person may charge an additional fee based on the rate set out in 2.1.
3.0 RENTAL VALUATIONS
|Gross Annual Rental (GAR)||Tariff|
|Up to R15 000||R270 per R1 000 of GAR|
|R15 000 to R50 000||R4 050 plus R30 per R1 000 of GAR over R15 000|
|Over R50 000||R5 100 plus R7.50 per R1 000 of GAR over R50 000|
1. In addition to the above tariff a fee based on the rate set out in 2.1 may be charged for necessary investigations and research.
2. The fee per rental determination should not be less than R1 600.
3. Any additional work done at the time of valuation on instruction of the client to establish future rentals should be charged at the rate set out in 2.1.
4.0 FEES FOR ATTENDING COURT, ARBITRATION OR OTHER PROCEEDINGS, ENQUIRIES OR MEETINGS TO GIVE EVIDENCE OR FOR CONSULTATIONS AND WHEN APPOINTED AS A MEMBER OF ANY SUCH COURT OR PROCEEDINGS.
4.1 A fee of one and a half times the scale set out in 2.1 may be charged for preparing for and attending any court, arbitration or other proceedings, enquiries or meetings or to give evidence and for consultation and attending on attorneys and counsel, time taken in research, making enquiries and preparing evidence.
4.2 In the event of such attendance at courts, arbitrations or other proceedings, enquiries or meetings being postponed, cancelled, settled by mutual consent or by legal process at any time during any day, fees for a minimum of eight hours should be charged for that day, even if no hearing is attended.
5.0 FEES FOR ACTING AS AN ARBITRATOR, MEDIATOR, MEMBER OF A TRIBUNAL OR ASSESSOR IN COURT PROCEEDINGS
5.1 Registered persons may charge a minimum fee of R12 000 per day, or part thereof, when acting as an arbitrator, mediator, member of a revision court/board, valuation court/board for rating purposes or as an assessor in any court/board proceedings.
5.2 In addition to the remuneration set out above, the following services may be charged based on one and a half times the hourly rate in terms of 2.1:
5.2.1 Attendance at preliminary hearings
5.2.2 Inspections in loco
5.2.3 Perusal of documentation and attendance thereon
5.2.4 Preparation for hearings, and
5.2.5 Preparing and presenting the awards.
5.3 In the event of a registered person accepting any of the aforegoing appointments at a venue other than in his or her usual residential or business area, he or she may charge the necessary travelling and accommodation expenses in terms of 8.0.
5.4 In the event of any arbitration hearing, mediation, revision court/board, valuation court/board, or other relevant hearing being postponed, cancelled, settled by mutual consent or legal process at any time during any day, the following minimum fees may be charged:
5.4.1 Within 7 working days of the day set down for the hearing – 4 hours
5.4.2 Within 3-6 working days of the day set down for the hearing – 8 hours; and
5.4.3 Within 1-2 working days of the day set down for the hearing – R8 000
5.5 When fees dealing with valuation courts/boards or committees are laid down by statute, then registered persons may accept such fees.
5.6 Any costs incurred by registered persons for the hiring of venues for hearings, secretarial and recording services and other related costs may be charged in addition to the aforegoing.
6.1 In addition to the remuneration set out above, the following transport allowance may be claimed in all cases in which the valuation (including court, arbitration or other proceedings, enquiries or meetings to give evidence, or for consultations and inspections in loco) has to be performed at a place other than the place of business of a registered person:
6.1.1 When own transport is used – R4, 50 per kilometre
6.1.2 When public transport is used – the actual cost
6.1.3 When conveyance is hired – the actual cost.
6.2 Where, in the course of one journey, valuations are performed on the instruction of two or more persons, the transport allowance claimed in respect of that journey should be recovered pro rata from the persons concerned.
6.3 No transport allowance should be claimed when the person requiring the valuation provides suitable and safe transport; provided that where transport which is uninsured in respect of third party risk is offered, the registered person need not accept such conveyance but shall be free to proceed as if no transport facilities have been offered.
6.4 In addition to the remuneration and transport allowance set out above, the following may be claimed:
6.4.1 For the time spent travelling to and from the place of valuation and necessary detention while not engaged in the valuation, the time charge as set out in 2.1
6.4.2 Accommodation expenses, meals, and refreshments at cost.
7.0 DISBURSEMENTS AND COSTS
Disbursements and costs incurred by registered persons may be charged as follows:
7.1 Purchase and preparation of plans and drawings – at cost
7.2 Obtaining expert advice and assistance – at cost
7.3 Typing and secretarial fees – at 15% of the applicable time charge set out in 2.0
7.4 Postage, telephone calls, photocopies, photographs and other incidentals – at cost
7.5 All other necessary expenses not specifically listed – at cost.
8.0 INTEREST ON OVERDUE ACCOUNTS
Registered persons are entitled to charge interest on overdue accounts at a rate of 3% above prime bank lending rates, subject to the maximum laid down by law.
Registered persons may charge fees at an hourly rate for consultation (excluding consultation as envisaged in 4.0) when consulted in a professional capacity either in person, by telephone or in writing, when such consultation does not lead to instructions to effect a valuation.
10.0 INTERIM ACCOUNTS
Registered persons may submit interim accounts for progress payments during the course of an assignment.
Registered persons may, at their discretion, require a client, or the representative of the client, to pay an agreed sum as deposit against payment of fees prior to commencement of an assignment.
12.0 INVESTIGATION OF ACCOUNTS
For an account to be investigated the complainant must pay an amount of R500 plus VAT, which will be refunded if an adjustment to the account is made.
Investigations into accounts are to be undertaken by a person appointed by the President of the Council.
Bill of costs
10% of the adjusted account allowed, with a minimum of R500 plus VAT per account, payable by the registered person to the Council.
If a hearing is held, a further 5% of the adjusted account will be payable.
Adjustment of account
If the original account has not been paid by the complainant the registered person must issue an adjusted account.
In a case where the complainant has paid the original account the registered person must issue an adjusted account and repay the due amount to the complainant within 30 day of the date of the decision of the investigator.
PROPERTY APPRAISAL (SWORN APPRAISAL) FEES
Property Appraisal Fees.
In terms of the Regulations under Section 103 of the Administration of Estates Act 1965 (Act no. 66 of 1965) as amended by Government Gazette No. 34762, effective from 18 November 2011 to present:
Amendment to Regulation 9:
1. “Every Appraiser is entitled to remuneration according to the following tariff in respect of every separate or continuous appraisement by him or her for the purposes of the Act”
|Value of Property||Basic Tariff||Additional to Basic Tariff|
|Up to R10 000||R246.20|
|From R10 000 to R20 000||R281.40|
|From R20 000 to R300 000||R281.40||R3,90 per R1 000 over R20 000|
|From R300 000 to R800 000||R1 371.80||R2,60 per R1 000 over R300 000|
|From R800 000 up||R2 690.80||R1,80 per R1 000 over R800 000|
2. “The tariff fee shall be increased by 20% subject to a maximum or R65-10 for every separate or continuous appraisement…. including the completion of any prescribed form.”
Amendment to Regulation 10: In respect of transport allowance: R3-50 per kilometre
Amendment to Regulation 11: “In addition to the remuneration and transport allowances set out in Regulations 9 and 10, the following allowances may be claimed:
a) For time spent travelling to and from R44-00 per completed hour but the place of appraisement: not exceeding R439-70 per day
b) For necessary detention while the appraiser R44-00 per completed hour but is not engaged in the appraisement: not exceeding R439-70 per day.