These valuations could be tricky
IF MUNICIPAL valuations are higher than prices achieved, buyers could be forced to pay transfer on the higher figure.
Municipal valuations of residential property are time and again a cause of contention, says Lanice Steward, MD of Anne Porter Knight Frank.
“If the municipal valuation of your property is above the genuine market value and you do not get it altered in the next round of revaluations, you could find that when you decide to sell your property the buyer has to pay transfer duty on the higher municipal valuation, not on the price achieved. This could be a cause of considerable annoyance.”
Steward says it is the duty of the agents to prove the market price has not been artificially manipulated to achieve a lower transfer duty.