The E-valuer

An E-valuer gives you an instant estimate of the current market value for a property and is the best source of buyer and seller confidence without the higher cost of a Full Market Valuation. It is an Automated Valuation Model (AVM) and is based on recent, nearby comparable sales created by CoreLogic NZ, New Zealand's leading supplier of property data and analytics. This report is Ideal for preparing to negotiate or looking to see how much your property is worth before selling. Purchasing an E-valuer also gives you:

  • Recent, nearby comparable sales, also mapped out for convenience
  • The property’s Rating Value
  • Additional property details including floor and land area and construction materials.

 

Understanding the E-Valuer

The E-valuer provides you with a confidence rating of medium or high (for properties with a low confidence rating we do not provide a valuation figure).

Confidence Ratings are based on a Forecast Standard Deviation (FSD) calculated for each estimate. The FSD calculation is based on analysis of the comparable sales used by the E-valuer to gauge how accurate the E-valuer is likely to be.

The FSD represents the probability that an E-valuer will fall within 68% (one standard deviation) of the actual market price. The lower the FSD the closer the estimated value is likely to be to the actual sales price. For example – if a property shows an FSD of 10%, this means there is a 68% probability that the actual market value will fall within ± 10% of E-valuer’s estimated value.

E-valuers are tested every week against property sales from the last six months. The results show that nationally E-valuer consistently values properties within 10% of the actual selling price over 69% of the time, and within 20% of the selling price for over 93% of properties.

Internationally, being within 10% of the actual selling price approximately 65% of the time is considered to be very good, indicating that the performance of our E-valuer is world class.

Why does a property not have an E-Valuer available?

Some of the reasons why an E-valuer might not be available or where the E-valuer may be outside the value range include:

  • There are not enough comparable sales. For an E-valuer to be available for a property, there needs to be at least 3 comparable sales and they need to be recent. To be classed as
    comparable sales they need to have similar attributes such as the property value, land area and floor area.
  • A property having unique characteristics, such as being on the waterfront or a heritage property. This will often result in there not being enough properties in the area that would be
    considered to be comparable. In this instance we recommend that you get a Full Market Valuation.
  • The property is leasehold. For leasehold properties, the E-valuer estimate is not based on the property being sold as leasehold, instead it is calculated on the basis that it is a freehold
    property. Where a property is identified as leasehold in the District Valuation Roll this will be displayed above the Estimated Value on the E-valuer report, however you can also check
    whether a property is leasehold by purchasing a Certificate of Title details report.
  • High buyer demand or emotional appeal for a property pushing up the selling price.
  • Significant improvements may have been made to a property that are not yet reflected in the Rating Valuation. If you are looking to sell a property where renovation work has not yet
    been reflected in the Rating Value, we recommend that you get your Rating Value reviewed.
  • It is deemed to be a TC3 or Red Zone property as a result of the Christchurch earthquakes. This is evaluated periodically as more information becomes available.

Full Market Valuation

In many cases an E-valuer will be enough for you to understand the value of a property or for a bank to make lending decisions, however a Full Market Valuation can be required for a variety of different reasons, including securing finance when purchasing a property, for refinancing and when selling. However, check with your bank first as each has their own specific lending criteria.

Click here for more information on Full Market Valuations


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