Should I Use The R.V. As A Price Guide?
A common question I get asked from both buyers and sellers is – should I use the R.V. as a price guide.
Whilst many people do use the properties rateable value (RV), sometimes referred to as Government value (GV) or capital value (CV) as a guide, there are a few fundamental problems to be aware of.
Firstly the R.V’s are only reviewed every three years through a process called mass valuation. Each property gets entered into an algorithm to determine your properties new R.V.
Secondlly most properties are not visited by a valuer unless the owner objects to the new R.V.market
And the obvious one, for two years and 10 months of the 3 year period, the R.V. it is out of date, relative to the market.
How can you get an idea of a properties value?
The best way is to compare the property with other similar properties which have recently sold, these will often give you a really good gauge of what the property might be worth.
As agents, we have relied on a website called Property Guru to supply us with this information for years, and it is part of the process we are required to undertake when we list the property for sale.
With the advancement of technology, this information is now thankfully available for buyers to obtain via websites like homes.co.nz where you can go in and search for a specific property and it will show you an estimated purchase price based on a recent sales data comparison.
A small disclaimer is that this website is still a work in progress, but from the research I have done this site offers a really valuable service.
Another option is to hire the services of an independent registered valuer to obtain a registered valuation.
If you are serious about selling I would recommend speaking to an agent that comes highly recommended. Determining your properties value is one thing, but getting maximum exposure and securing a Premium Price is another entirely. Achieving a Premium Price for your home is heavily dependant on the agent you choose. Their marketing skills, negotiating skills and method to market are all critical factors in achieving Top Dollar for a property.
It is important to note that a property is only worth what someone is prepared to pay for it. The price that the owner paid for the property and the money spent on renovations do not always have a bearing on the value of the property. In some cases someone may have paid to much for a property, prices may have dropped or the renovations carried out, do not equate to value in the buyers eyes. Money spent on maintenance and up keep also does not add to the value of the property.
If you have any questions about buying or selling please do not hesitate to contact me.