How Much is that House Worth?
Whether you are buying or selling a home it is important that you are able to estimate the value of the property in question.
As a buyer, you need to know what is a bargain price, a fair price and a rip-off price. And as a seller you need to recognise a great price that you should grab, from a low-ball offer that does not reflect market value.
So, what resources are available and how reliable are they?
Premiums compared to CV
All homes have a Capital Value (CV) set by the local councils every three years for rating purposes. CVs are notorious for becoming quickly out of date and woefully inaccurate, however, QV.co.nz analyses the difference between CVs and actual sales prices over the last three months and expresses this as a + or – percentage. You can then apply that percentage to your property’s CV to get an immediate, ballpark estimate of current value.
Verdict: A great place to start
· To find your CV go here, click on Search for Property Information and enter the address.
· To find the premium to CV go to QV.co.nz and enter the name of the suburb and click Search.
This is a new website, currently still in its testing stage, which aims to provide all sorts of home information to New Zealand buyers and sellers.
Just type in an address, and up pops a box with details of the CV, sales history and property features, together with a “Homes Estimate” of the value, calculated each month using their own valuation algorithm.
Click here to try out Homes.co.nz
Verdict: Patchy coverage, but fascinating for nosey neighbours!
QV.co.nz’s E-Valuer service offers an instant, online estimate of the current market value for a property.
It is an Automated Valuation Model (AVM) and is based on recent, nearby comparable sales. An E-Valuer also gives you:
- Recent, nearby comparable sales, mapped out by location
- The property’s Capital Value
- Additional property details including floor, land area and construction materials.
Click here to learn more about E-Valuer Reports
Cost: $49.95 per property
Verdict: Very helpful - especially for auction buyers - but it is still only computer generated estimate and doesn’t take into account any unusual features or improvements.
Full Market Valuations
Undertaken by a Registered Valuer, and based upon an inspection of the property, as well as a comparison of local recent sales, this is the most accurate assessment of a home’s valuation. This type of valuation may be required by some lenders for home loan approval.
The full valuation report can be a great help; buyers can be confidently assured they aren’t paying too much for a home and sellers can use it to justify their asking price.
Click here for details of Full Market Valuation providers in Auckland, Wellington and Christchurch.
Cost: From $500 + GST per property
Verdict: Very accurate, but very expensive if you choose to get one for every property you might have an interest in.
Stephen Hart runs Hometopia.co.nz – the free online resource centre for home buyers and sellers - and buyers’ agency, Auckland HomeFinders.co.nz