Home owners dispute valuations

With less than three weeks to go for Nelson Mandela Bay property owners to lodge their complaints about the municipality’s pricing of their homes, the city is adamant that its valuation process is accurate and among the best.

However, some home owners are disputing the 2017 General Valuation Roll, saying it is flawed and not based on market values.

The metro published the latest valuation roll last month and distributed it to individual accountholders.

It hopes to get more revenue in its coffers from the property value process, targeting an extra 7% in income from rates.

But estate agent Linda Byron, who has been handling valuation objections on behalf of some property owners for the last 10 years, said the market was not showing any improvement since the 2013 valuations.

Byron, who assists residents in her personal capacity, said she had objected to the city’s valuation of her own property in 2007 and 2011.

She would do so again this year as she was facing a 32% rates increase, even though she had not done any renovations since the last valuation.

Three other homes in her street of similar size were each slapped with different increases, she said.

One had increased by 14% in value, the second by 23%, the third by 32% and the fourth by 40%.

“All four of us have lived in our houses since the last valuation, so how are the figures so different?” Byron asked.

Listing examples of clients whose property values had skyrocketed, she said one resident had bought a house in Walmer for R2.5-million in 2015, but the municipality now priced the home at R3.7-million.

Another client bought a house for R1.7-million four months ago, but the city has valued his house at R2.6-million.

“That is wrong. What they paid was the market value, so they have a good basis to object,” Byron said.
A 96-year-old resident in Walmer had been hit with a 131% value increase since 2013.

“In 2013, his house was valued at R1.1-million, and that was based on a successful objection.

“He’s done no renovations but the municipality has valued his house at R2.55-million. His house has not been touched.

“These new rates kick in in July and then you have to factor in the extra 9.5% property rates increase.

“This means the man’s rates will have increased from R964 a month to R2 466 a month from July.

“This is insane. It’s wrong and it’s impossible. We’ve not seen an increase in house values over such a short period.”

The municipality, on the other hand, said the municipal valuations were market-related.

Political budget and treasury head councillor Retief Odendaal said property values were determined through a study of home sales in specific areas and the size of the properties.

“In most cases, we’re spot on, but it could be that the municipality made a mistake,” he said.

“My advice would be for residents to phone estate agents and get the market value of the property in specific areas.”

Asked if the municipality’s method of valuations was not open to legal challenge, considering it did not physically inspect each of the houses to determine the value, Odendaal said he did not believe so.

“There’s no onus on the municipality or service provider if people don’t object. Our method is an accepted practice.”

Property owners have until April 28 to submit objections.