An estate agent’s appraisal is a marketing opinion, it’s there to help list and sell the property, and it’s usually free. A professional valuation is a signed report, prepared to an international standard by a SACPVP-registered valuer.

The practical difference is what each one can be used for. Agent appraisals carry no weight with banks, SARS, the courts or auditors. A professional valuation does: it’s what a bank will lend against, what SARS will accept for capital gains tax, what an executor uses in a deceased estate, and what an auditor signs off against in financial statements.

Residential valuations generally run from around R2,500 to R8,000. Commercial, industrial, agricultural and portfolio valuations are priced individually, because they depend heavily on size, complexity, location and what the report is for.

What moves the fee is the depth of evidence needed, whether the report has to stand up in court or at an appeal board, and the turnaround required. We’d rather quote honestly after a short conversation than give you a headline price that doesn’t fit the job, a R3,000 mortgage valuation and a R30,000 litigation valuation are genuinely different pieces of work.

RICS (the Royal Institution of Chartered Surveyors) is a global professional body based in London. It sets the internationally recognised standard for property valuation, the “Red Book”.

A RICS-qualified valuer is a signal to international banks, cross-border investors, global REITs and foreign auditors that the work meets the standard they expect. For South African clients with offshore shareholders, listed-entity reporting obligations or international dealmaking, having a RICS professional sign the report removes friction that would otherwise slow the deal down.

Most residential valuations are delivered within 5 to 10 working days of the inspection. Commercial, industrial and portfolio work runs longer, usually 2 to 4 weeks, because there’s income analysis, tenant schedules, lease reviews and deeper market research involved.

We can often accommodate urgent timelines when a deal, court date or objection deadline demands it. The honest caveat is that rushing shortens the research, so we’ll tell you what the trade-off is before agreeing to a compressed turnaround.

Miss the official window and that’s effectively it, late objections aren’t accepted. There are still a couple of routes back in, though. Properties added or materially changed after the general roll is published get captured on the annual Supplementary Valuation Roll, which has its own objection period. A Section 78 process under the MPRA can also create an opening in certain circumstances.

The practical advice is to act the moment the next window opens, and have the professional valuation already in hand so the objection is substantiated from day one rather than scrambled together at the deadline.

A deceased estate needs a valuation of the immovable property as at the date of death, in a form the Master of the High Court and SARS will accept (for estate duty and capital gains tax).

Historically this was done by an “appraiser” on a Rev 246 form under the Administration of Estates Act. More and more executors now prefer a full valuation report by a SACPVP-registered Professional Valuer, because SARS and beneficiaries both expect reasoning they can see and test, not just a figure. We regularly prepare these for executors, attorneys and trust companies.

For audited financial statements, whether for a listed REIT, a private company, a trust or a municipality — property usually has to be reported at fair value in line with IFRS 13 and IAS 40. That calls for a valuation by a suitably qualified independent valuer, applied under International Valuation Standards, with assumptions transparent enough for the auditors to interrogate.

Our work for listed companies, banks and municipalities is prepared with exactly that scrutiny in mind. The report has to satisfy the client, yes, but it also has to satisfy the audit partner and the audit committee sitting behind them.

Three different concepts, used for three different jobs.

Market value is the price a property should exchange for between a willing buyer and a willing seller in an arm’s-length transaction on the open market. Forced sale value (sometimes called liquidation value) assumes a compressed selling period, usually produces a lower number, and is what banks and liquidators use when they’re sizing up distressed scenarios. Replacement cost is what it would cost to rebuild the improvements new, less depreciation, and it’s mainly used for insurance.

Using the wrong concept for the wrong purpose is one of the more expensive mistakes in property decision-making, and we see it regularly.

For personal, owner-occupied residential property, every three to five years is a sensible rhythm, or sooner if there’s been significant renovation or a big shift in the local market.

For income-producing commercial property held by companies, trusts, REITs or funds, annual or biannual valuations are standard for financial reporting, with more frequent updates typically needed around transactions, refinancing or strategic reviews. Municipal valuations are refreshed by the metros every three to four years through the General Valuation Roll, but those are a tax instrument, not a reliable read on market value, so it’s worth holding the two apart in your head.