Mangaung Metro is in the process of updating property values across the city.
While this article is specific to a process being undertaken in the Free State capital, the basic principles apply to all revaluations of any municipal roll.
Most property owners in the metro should have received notification of the 2022 Municipal Valuation Roll.
On a regular four- to five-year cycle, every metropolitan and municipal area needs to do a revaluation of all properties in its jurisdiction in order to comply with its obligation to charge rates based on the use and valuation of the properties in line with the Municipal Valuations Act.
This has just been completed for Mangaung Metro and property owners may launch objections if they are not happy with the outcome.
The concept is that rates are levied at an agreed rate based on the value set for a property by the city valuer.
City valuers can be in-house professionals or can be employed by the local municipality from outside.
They have to be registered valuers.
Municipal valuation is a specialised form of valuation called mass valuations because they are intended to revalue a large number of properties based on sampling.
In effect using aerial photos and past information, the valuer will assess the size of properties and place a value per square metre on the property.
Some variation is allowed depending on which area the property is situated so that a high-income level home of 200 square metres would not have the same “municipal value” as a mid- or low-cost housing area.
Age of the property, general conditions in the area, type of finishes will also have an effect on the value placed on individual properties.
The valuer will also do spot valuation to confirm their thinking or make adjustments where necessary.
For example, a slum building in the centre of town will have a different valuation placed on it from an identical new building next door.
During the valuation process the valuer will also take into account the location of a property so that a house next to a service station is likely to have a lower value than an identical one two doors away.
The valuation roll is used to re-value properties in the metro area so that rates and taxes can be charged on property owners.
The intention of the valuation roll is to set a building’s value at its realistic market value.
This is a mammoth task and errors can creep in.
The process allows you a short time to object to the value that has been set on your property by the city valuer.
If you do not agree with the new valuation, you will need to fill some objection forms to state your case.
It is important to note that there are different forms to be used for normal properties, small holding properties, and farms.
When you object you can only do so objectively, by showing that the value that they have given is unrealistic in the current market.
You can also object if the zoning for your property is incorrect or if the owner’s details are incorrect.
Whatever objection you make must be accompanied by some sort of proof of your reasons for objection.
If your objection is based on the price, a valuer’s valuation should be attached as proof that an independent professional person has assessed the probable selling price of your property.
For incorrect names of owners, a copy of the title deeds would suffice.
A zoning certificate showing the correct zoning of a property can be obtained from the 10th floor at the metro’s Bram Fischer Building.
Please note that if you use your premises for any other purpose than what it was zoned for – for example a residential house as a business property – then the higher use will be used to set the rates that will be levied.
As a professional associated valuer myself, I will be happy to assist owners with desktop or full valuations of their properties.
Desktop valuations are done using online information available to valuers while a full valuation is one that includes an inspection of the property being valued.
Desktop valuations are not expensive while full valuations are slightly more expensive.
I can be contacted on 082 881 4711 or by email: mike@platinumglobal.co.za.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.