How much is your property worth

Know how much your property is worth

Have you been lately thinking of selling your property? Before you dive into the different market platforms, make sure you know how much you property is worth.  

Before selling your property spend some time to look up the market. Market trends can indicate what you can expect from your selling. For instance, the national market has been flat in 2019, but the sales has been on the top this September in the last 3 years. “This suggests that we’re starting to see the usual spring uplift and also that more confidence is starting to creep back into the market,” said REINZ chief executive Bindi Norwell in October. Finding controversial information about what experts suggest, do not be shy to ask for professional help.

As for the second step towards putting your property on the housing market, find out what price would be realistic to ask for your property. There are many companies on the market offering you a property appraisal, that would give you a professional opinion about the value. There are some things you can consider yourself without making a call, however.

There are 4 types of value of your house

It might seem crazy to say, that there are 4 different way to evaluate your property.

  1. A capital value (CV) – the value generated by your local council in order to set your rates, sometimes known as a government valuation (GV), or as a rateable valuation (RV).
  2. Its market value – the price you’d get if you sold it today.
  3. registered value – usually used by the bank to secure or refinance a loan on the property.
  4. A rebuild value – the estimated cost of rebuilding your home if it is destroyed in a disaster. This is your ‘sum insured’.

Property Evaluation

Property Evaluations occur usually when there is a purchase, and the buyer wants to make sure, the property is on sale for a proper price. These evaluations can be done by registered valuers. There are almost 800 register valuers in NZ according to Gazette.govt.nz

If you do not want to go through all of the names finding the best company for you, you can search up your property value online. Local authorities are legally obliged to carry out property evalutaions at least every 3 years, and the results are public. There are many webpage that are linked to this database, and by giving your address, you can have a look at the latest evaluation. Look out for the date of the latest evaluation in your region, because if a new evaluation can be expected in the upcoming months, it means not only, that soon you will be able to receive the latest data, but also that the current data is more than 2 years old.  

How much is your property actually worth

Is it time for a general property valuation in your region? There are things you might wan to know what they look at. What the valuer considers are:

  • property type
  • location
  • land size
  • zoning
  • floor area
  • consented work (renovations, new build, subdivisions etc.)
  • and more

After considering these factors, 3 different type of values of your house will be given.

  1. Capital value (CV) – The most likely selling price at the date of valuation. The CV is also known as Government valuation (GV) or Rateable value (RV).
  2. Land value (LV) – The most likely selling price of the vacant land at the date of valuation.
  3. Improvement value (IV) – The added value of improvements to the vacant land. This is calculated as CV minus LV..

Are you happy with your research? Great! It is time to put your property on the market. Good luck!