Property Valuation Frequently Asked Questions
Do you have some questions about property valuation? What does it involve? What can you expect? What do the terms used mean? We hope to answer all of your questions here, but if you have a question that isn't answered please contact us.
What does a property valuer do?
A property valuer inspects the interior and exterior of your property, taking detailed notes on construction materials, fixtures and fittings and property condition.
They measure and calculate the floor area of all the improvements.
They consider the building view from the road and analyses comparable market sales.
Depending on the type of valuation, the Valuer will use two or three of the valuation methodologies to analyse the subject property.
- Direct sales
- Depreciated replacement cost following comparison
- ncome appreciation
After analysing the above information, the valuer provides a detailed written report to the client identifying the property’s assessed current market value allow methodology meets the requirements of NZIV & PINZ reporting standards, practice standards and guidance notes.
What is a valuation report?
A valuation report is a professional written assessment of how much your property is worth. Our valuers will inspect the property, consider all the factors that affect the value and write-up a professional property report that may include, but is not limited to, the following:
- property summary
- registered proprietors
- legal description
- resource management/zoning
- statutory assessments (RV, rates)
- land description
- full description of the building/buildings
- valuation process identifying the methods used
- list of comparable sales
- a general market comment
- date of instruction* leases (if applicable)
- asserted market value
- mortgage recommendation
What is a Rating Valuation?
Rating Valuations (RVs) are compiled by statute, under the Rating Valuations Act 1998, mainly as a uniform basis for levying local authority and regional council rates.
Rating Valuations also serve as a useful guide for property owners and other interested parties, as they are impartial and independently assessed.
How is a Market Valuation different from a Rating Valuation?
A Full Current Market Valuation is a professional estimation of how much your property is worth in the current property market, as determined by a qualified valuer visiting your property and conducting a valuation.
A Council Rating Value is undertaken by local councils to establish property values in order to determine council rates. Most councils in New Zealand reassess property values every three years, so a rating value is only an accurate measure of a property’s value at the date of the last revaluation.
Why use a Property Valuer instead of a Real Estate Agent?
A property valuer is a trained and qualified professional who will provide an independent report on the property. The valuer has no financial interest in the property.
A real estate agent does not provide a current market value of your property, but instead what they believe the property may sell for. They have no legal responsibility to provide an accurate valuation, and can be motivated by financial factors.
Where We Work
We travel far and wide, servicing the Auckland, Waikato and Bay of Plenty areas.
These areas include; Huntly, Matamata, Meremere, Morrinsville, Ngaruawahia, Paeroa, Papamoa Beach, Pokeno, Putaruru, Te Aroha, Raglan, Te Awamutu, Whitianga, Tauranga, Pirongia and more.
This is the assessment of the probable price that would have been paid for the property if it had been for sale at the date of the last general revaluation (as shown on your Notice of Rating Valuation). A Capital Value does not include chattels, stocks, crops, machinery, goodwill or plantation trees.
This is the probable price that would have been paid for the land as at the date of valuation. The land value includes any development work which may have been carried out, such as, draining, excavation, filling, retaining walls, reclamation, grading, levelling, clearing of vegetation, fertility build-up, or protection from erosion or flooding.
Value of Improvements
This is the difference between the Capital and Land Value. It reflects the additional value given to the land by any buildings, other structures or cropping trees and vines present on the property, and any landscaping that adds value to the land.
Annual Value (where assessed) is the greater value of either the estimated gross annual rental less 20% (or 10% if there are no buildings on the land) or 5% of the property’s Capital Value.
The owner is the Ratepayer, unless the owner can prove that there is a lease in place that meets the statutory definitions for the lessee to be the Ratepayer (Section 11, Local Government (Rating) Act 2002).
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