how to determine the current value of a property
Whether you are buying, selling, or just interested in the value of your own home, how do you determine how much a property is currently worth? We’ll take you through a range of options from a simple rating valuation, to getting in a valuer, and some quick and cost effective ways to do it yourself.
Rating Valuation
Rating values (RV), also sometimes referred to as Government valuation (GV), are prepared on behalf of a council by a number of different providers, including QV, as one factor used to fairly apportion rates. A Capital Value (CV) is one part of a rating valuation and provides a snapshot of the market value of a property at one point in time. Capital Values are based on property sales in the area at the time of revaluation, and should closely reflect the market at that time. While Capital Values are primarily used as a way to apportion rates they also provide a general guide as to a property’s value, particularly in the months around the time they are valued. But as they are only calculated once every 3 years and there is likely to be ongoing changes to property values, their usefulness in determining the current value of a property is limited.
You can access rating valuations for every property in New Zealand from QV.co.nz.
Recent Sales
Recent sales are one of the key elements to help determine the current value of a property as they provide evidence as to what people are willing to pay for a property in the current market. They are also a great DIY way to determine the value of a property. The best way to use recent sales to estimate a property’s value is to look at the sales details of similar properties. The Capital Value for each of these sales then provides a great benchmark to compare against the sales price. This will allow you to judge how much above or below the Capital Value a property is likely to sell for.
An easy way to access recent sales is with QV’s Local Sales reports. You can customise your search criteria and purchase up to 10, 20, or 30 sales.
E-Valuer
E-Valuer provides an instant estimate of a property’s current market value. This takes the hassle out of trying to find and determine comparable recent sales as E-Valuer does all this for you. E-Valuer uses a range of dynamic criteria including building age, proximity and value to find comparable sales. Each sale is then weighted based on how similar it is to the target property and the weightings and sales prices of the most comparable sales are used to calculate an estimated market value. An E-Valuer report not only gives you an instant estimated market value but also includes the recent sales and the property’s sales history to help you determine where the property’s value fits within the range provided. At only $39.95 E-Valuer provides an easy and cost effective way to determine a property’s current value.
If you want to track your home’s market value then check out My House Value Tracker. This provides a monthly E-Valuer estimated value for 12 months for only $24.95. It also includes the estimated value for the last 2 years so you can see how your home’s value is performing in the current market. While this report doesn’t include recent sales and sales history, it’s a great tool for homeowners wanting to monitor the value of their biggest asset – your home.
Full Current Market Valuation
Full current market valuations are prepared by a registered valuer following a thorough inspection of a property. Market valuations represent the most comprehensive analysis of the current value of a property, as the property is inspected both inside and out, and can be obtained at any point in time. The valuer will utilise the most recent sales data available, as well as use their professional judgment to consider any factors that may have changed since those sales occurred and arrive at a final value. If buying or selling a property a Full Current Market Valuation will provide you with a higher level of confidence about that value.
To get any of these valuations and tools to help determine the value of a property simply visit QV.co.nz and search for a property.