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BVS Valuation Services
Why do I need a Valuation?
Common Property Valuation Terms
Property Valuer vs Estate Agent
Types of Value
Supporting Document Requirements

​​​Understanding Property Valuers, Evaluators, Appraisers and Other Property Valuation Terms

Many people only require a property valuation once or twice in their lifetime. As a result, it is common to encounter different terms such as Property Valuer, Property Evaluator, Property Valuator, Property Appraiser or Property Expert and wonder whether they all mean the same thing.


While some of these terms are used interchangeably by the public, there are subtle differences in terminology depending on the country, industry and purpose of the valuation.

This guide explains the most common property valuation terms used in South Africa and what a property valuer actually does.

​What is a Property Valuer?

A Property Valuer is a professional who has been educated and trained to determine the value of fixed property, execute feasibility studies and provide expert advice on property-related matters. An independent Valuer can provide impartial and motivated reports on the value of real and limited rights to land.

The Valuer needs a thorough knowledge and understanding of the interacting influences which create, maintain or diminish the value of property or rights thereto. It is important to note that a Valuer does not invent value but interprets market forces which determine value.

The International Valuation Standards (IVS) describes a Valuer as a person who possesses the necessary qualifications, ability, and experience to execute a valuation and is licensed to do so. In the South African context, a professional needs to be registered with the South African Council for the Property Valuers Profession (SACPVP).

*The Valuers’ Manual – South African Institute of Valuers

Property Valuers assess a wide range of property types, including:

 

  • Residential Properties
  • Commercial Properties
  • Industrial Properties
  • Agricultural Properties
  • Development Land
  • Specialised Property Assets

Valuations may be required for a variety of purposes including deceased estates, financial reporting, lending, litigation support, property transactions and investment decision-making.

​​Understanding Common Property Valuation Terms

This is the most commonly used professional term in South Africa.


A Property Valuer provides an independent opinion of property value based on market evidence, analysis and professional judgement.

The term Property Evaluator is commonly used by members of the public.

Although less frequently used within the valuation profession itself, it is generally understood to refer to a professional who determines the value of property.


In most cases, someone searching for a Property Evaluator is looking for the services of a Property Valuer.

Property Valuator is another term frequently encountered online.

Whilst "Valuator" and "Valuer" are often used interchangeably, "Property Valuer" is generally the preferred industry term within South Africa.

The term Property Appraiser is most commonly used in the United States of America.


South Africans frequently encounter this term when researching valuation-related topics online. In practice, the South African equivalent is generally referred to as a Property Valuer.

The term Property Assessor may have different meanings depending on the jurisdiction.


In some countries it refers to officials involved in taxation assessments or rating functions. In South Africa, the term is less commonly used within the private valuation profession.

A Municipal Valuer is a specialist property professional responsible for the preparation and maintenance of municipal valuation rolls, which form the basis for property rating and taxation by local authorities. Their role focuses on the mass valuation of properties in accordance with applicable legislation and rating policies.


This differs from the role of an independent Property Valuer, who undertakes individual property valuations for purposes such as property transactions, mortgage lending, financial reporting, insurance, deceased estates, litigation support, dispute resolution, and other market-related assessments.

Property Expert is a broad and informal term.


A property expert may be a valuer, estate agent, developer, investor or consultant. The term itself does not refer to a specific profession and should not automatically be assumed to mean a Professional Valuer.

An Estate Agent specialises in the marketing and sale of property and may provide guidance on likely selling prices based on current market conditions and comparable property sales.


Although estate agents and property valuers both analyse property markets, their roles differ. Estate agents facilitate property transactions, while Property Valuers provide independent valuations for purposes such as mortgage lending, financial reporting, legal matters, municipal objections, estate administration and other formal valuation requirements.

TermCommonly Used In
Property ValuerSouth Africa
Property EvaluatorPublic Searches
Property ValuatorPublic Searches
Property AppraiserUSA
Municipal ValuerLocal Government
Estate Agent/Broker Sales and Leasing

​​​Is a Property Valuer the Same as an Estate Agent?

No.


Although both professions operate within the property industry, their roles are fundamentally different. A Property Valuer provides an independent opinion of market value based on market evidence and professional analysis, while an Estate Agent/Broker focuses on the marketing, leasing and sale of property and facilitates transactions between buyers and sellers.

Property ValuerEstate Agent/Broker
Provides an independent opinion of market value
Assists with the marketing, sale and leasing of property
Relies on market evidence, analysis and recognised valuation methodologies
Focuses on facilitating property transactions
Produces formal valuation reports
Provides guidance on pricing and marketability
May be appointed for mortgage bond finance, financial reporting, deceased estates, estate duty, disputes and litigation mattersPrimarily assists property buyers, sellers, landlords and tenants
Registered with the South African Council for the Property Valuers Profession (SACPVP)
 Registered with the Property Practitioners Regulatory Authority (PPRA)
Acts independently and impartially when determining value
 Acts on behalf of clients in the marketing and transaction process

​​​​​Types of Value​

​We have compiled a few definitions and explanations of the different types of Value:

Market Value

Market Value is defined as "The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion."


                                *IVSC definition of Market Value

Fair Value

Fair Value and Market Value are often used interchangeably. However, there are subtle differences: Fair Value as defined by International Financial Reporting Standards is “the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arms-length transaction.”

Utility Value

Utility Value is the value a specific property has for a specific use - for example a clubhouse, a school or a church. The focus is on the value that the real estate contributes to an enterprise of which it is a part, without regard for the highest and best use. Use Value may vary depending on the management of the property and the external conditions such as changes in business operations. The Use Value should not be confused with the term Value in Use.  

Investment Value

Investment Value represents the value of a specific property to a specific investor based on the investment requirements. In contrast to Market Value, Investment Value is value to an individual and not necessarily to the marketplace. It reflects a more subjective relationship between the investor and the investment. 

Business Value

In the context of property valuation, business value refers to the total value of a business, including both its interest-bearing debt and equity components. It is a measure of the worth of a business as a whole, rather than its individual assets.

There are several reasons for performing a business valuation, such as mergers and acquisitions, strategic planning, capital financing, and investing in securities.

Public Interest Value

This is a general term covering a family of value concepts that relate to the highest and best use of a property for non-economic uses. This type of value is driven by social, political or public policy goals. It is sometimes referred to as Intrinsic Value, Aesthetic Value or Scenic Value. For example, a national highway does not have a market value but, it serves the general public and therefore has a Public Interest Value.


Replacement Cost / Insurable Value

Insurable Value is the value of an asset or asset group that is covered by an insurance policy. It may be based on the replacement or reproduction cost of the asset, and does not take into account the asset’s condition.

Historic Value

A retrospective valuation, also known as a historical valuation, provides an official estimate of a property’s market value at a specific date in the past.  They are typically used for legal and compliance requirements, such as court proceedings, property disputes and damage claims. Retrospective valuations are also useful for estate planning, inheritance and wealth management, as they provide insights into market trends, assess economic cycles, and predict future market behaviour.

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​​Why do I need a Valuation?

A valuation is conducted to find the value of a property at the date of valuation. Knowing the value of a property can help individuals or businesses make important decisions related to various activities.

We have compiled a list of some of the activities and reasons why a property valuation may be required:

  • Buying and selling a property
  • Mortgage or bond loans
  • Property transfer
  • Financial statements
  • Investment analysis
  • Rental determinations for lease negotiations, renewals or disputes
  • Mergers or take-overs
  • Division of family or business property assets
  • Insurance value estimates
  • Valuation of deceased estates
  • Legal cases or arbitration purposes
  • Capital gains tax or other tax purposes
  • Compulsory acquisitions
  • Divorces
  • Municipal value objections
  • Forced sale values for liquidation purposes
  • Determine the highest and best use of a property
  • Immigration application purposes
  • Releasing of guarantees
  • Expropriation matters
  • Valuation of servitudes
  • Land claims and land restitution
Why do I need a Valuation?
Types of Value
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​​Supporting Documents

Every property is unique. While the valuation principles may remain the same, each property is assessed on a case-by-case basis. To more accurately provide a value opinion, various essential supporting documents are required. The different property categories have different requirements. To expedite the valuation process, it is useful to have some of the supporting documents ready. 

Residential

  • A copy of the latest Municipal Property Rates Account.
  • Approved building plans or architects' drawings/sketches in electronic format, if available, are essential. Additionally, a schedule of areas is beneficial. If necessary, these can be verified against site measurements.
  • A copy of the Title Deed if available.
  • A Surveyor General diagram. 

Commercial / Income Producing 

There are a variety of income-producing property categories. The most commonly known include retail centers, filling stations, office parks, industrial parks, and hospitality facilities. We have indicated below some of the typical supporting documents/information required to compile an accurate valuation assessment. The documents required would include those needed for a residential valuation as well as the additional items mentioned below. 

Tenancy Schedule or Rent Roll

For a multi-tenanted property, a tenancy schedule or a rent roll may be requested based on the valuation requirement. Each document is crucial and typically includes a summary of leasing information for each tenant, such as:
  1. The Commencement and Termination Date.
  2. The monthly rental amount excluding VAT.
  3. The annual escalation rate applicable to the rental.
  4. The size of the rental area in square meters also known as the Lettable Area.
  5. Details of expenditure recovered i.e. Recoveries.

* More items to be added soon.