GVR Matters
Webinar Summary: GVR – Why having your voice heard matters
Below is a summary of the webinar titled: General Valuation Rolls 2024 – Why having your voice heard matters. This webinar was hosted on 7 March 2024.
Ben Espach, the Director of Valuations at Rates Watch, explained that the aim of municipal valuers was to determine the market value of properties, as stipulated in the Property Rates Act. He acknowledged that while valuers did not intentionally overvalue properties, inconsistencies could arise from mass valuation exercises.
Espach described the process of building valuation models, which could sometimes result in entire streets being overvalued by a specific percentage. He emphasized the importance of quality control to prevent such mistakes and explained that the test for residential property values was based on willing buyers and sellers.
Regarding the guiding principles and review mechanisms in GVR, Espach stated that there was no formal quality control process from an external party, but some municipalities, like Cape Town, had used external bodies for quality checks.
He confirmed that the objection process was a tool available to the public, and they could also lay a complaint with the professional body of valuers if they felt the valuer acted unprofessionally.
Espach explained the significance of the valuation date, which established the market value for a specific property on a particular day. He mentioned that the valuation date for the 2024-2025 GVR must not have been more than 12 months before the implementation date, as it captured the market conditions at that time. Discussing the need for regular GVR, Espach stated that it was required to reflect market trends and changes in property values over time. He outlined the varying frequency of GVR between metropolitan and local municipalities, with metros typically having a five-year cycle and local municipalities a seven-year cycle.
Watch video highlights
Ben Espach, director at Rates Watch, talks about how one should understand value of their property.
Ben Espach, director at Rates Watch explains the ethical standards valuers must abide to and what your recourse is if you think they get it wrong.
Maike Gohl from hbgschindlers Attorneys, talks about making a value call before bringing in a professional
Maike Gohl from hbgschindlers Attorneys on when to use a law firm and not a valuer.
Espach described the role of private valuers in assisting property owners who felt their valuations were incorrect, emphasizing the importance of proper instructions when commissioning a valuation.
Maike Gohl, a partner at hbgschindlers Attorneys, provided the legal perspective on GVR and the objection process. She explained that the objection process was crucial, especially for category issues, as incorrect categories could lead to significant financial implications. Gohl advised property owners to consider the cost-benefit analysis of engaging professionals for objections and appeals.
Gohl outlined the steps involved in the objection process, including completing the form, providing evidence, and submitting the objection within the specified timeframe. She also explained the appeals process and the importance of meeting deadlines, as well as the option to take the decision on review in the High Court within 180 days. Gohl clarified that the section 78 query process could be used if the objection period had been missed.