A property valuation is a vital tool if you are buying or selling a house so you know exactly what the property is worth. It can save you time, money and potential property issues. Registered valuers offer an independent, expert assessment of a property’s value. A registered valuer also offers local knowledge and information about your property and the surrounding area.
A valuation may be required by a financial institution for a mortgage, re-financing or for a business’ financial accounts. In most cases, banks and other financial institutions will only accept a valuation from a registered property valuer.
A property valuation provides an independent assessment of the value of a property, based on a number of different elements, including an analysis of the current market, recent sales, council information, size and condition of the property. A valuation is used for a variety of purposes including buying or selling, mortgage lending, financial accounting, matrimonial property settlement, rental assessment, compensation and insurance.
Any property can be valued, including commercial and industrial properties, residential houses, farms, forestry blocks, lifestyle blocks, accommodation properties, tourism operations, maraes etc.
In New Zealand, property valuations must be undertaken by a Registered property valuer. In most cases, banks and other financial institutions will only accept a valuation from a Registered Valuer. A list of registered property valuers is available on the Property Institute of New Zealand website, www.propertyinstitute.nz.
After completing a recognised university property degree, every valuer must undertake an additional three years of postgraduate working experience. After three years they must complete a further practical and oral examination before the Valuers Registration Board before they can become Registered.
Registered valuers must be a member of the Property Institute of New Zealand, hold an annual practicing certificate and abide by the Valuers Registration Board Code of Ethics, the Property Institute of New Zealand valuation standards and the International Valuation Standards. A registered valuer must also complete 20 hours compulsory professional development annually in order to maintain an annual practicing certificate.
A list of registered property valuers is available on the Property Institute of New Zealand website, www.propertyinstitute.nz. A registered valuer will also have an annual practicing certificate available to view.
The valuation will depend on the type of property and purpose of the valuation. The process will usually include a physical inspection of the property, an analysis of comparable evidence in the area and an assessment of the value. The valuation will normally be presented in a detailed report that outlines the physical description of the property, the methods and evidence utilised to reach the value, the valuation figures, and specific recommendations from the valuer.
A valuation is not a structural survey, a geotech report, an earthquake assessment or a land survey. These are all services provided by other experts.
The cost of a valuation varies depending on the size and location of the property. Contact one of our nationwide offices to receive an indicative price in the first instance.
Clients need to be advised that valuations have a time constraint, especially if market is moving and thus may be out of date quickly.
A full current market valuation, which is that prepared by a Registered Valuer, provides a professional assessment of how much your property is worth in today’s property market at a certain date in time generally the date of inspection. A council rating assessment is undertaken by local councils to determine property values at a specific point in time, to enable the council rates to be assessed. Most New Zealand councils reassess property values every three years, and as a result, a rating value is only an accurate measure of a property’s value as at the date of the last rating valuation.
A council rating value provides a capital value for a property, plus the land value and the value of improvements. Chattels and plant are not included in the Rating Valuations. Generally these are mass appraisals of properties that are not normally physically inspected.
When buying a property, you should commission a valuer to undertake the assessment prior to putting in an offer. That way any issues identified by the Valuer can be addressed in the negotiation process and the document can be used to assist in negotiating the price.
In order to maximise the potential for achieving a sale, it is important to fairly reflect the true value of the property in the asking price. A registered valuation will help you ensure the property is realistically priced before it is listed on the market.
Posted 12 months ago