A valuation is a registered valuers professional assessment of how much a property is worth.   It’s different from the property’s Rateable Value (RV), formerly called the Government Valuation or GV. 

The RV is set by the local authority for the purpose of setting rates. It should be used as a guide to the property’s value only.  It’s based on general property values in the area rather than a detailed review of the property itself, it doesn’t include chattels such as carpets or appliances, and it may be out of date – some RVs are set only every three years.

In contrast, a valuer will visit the property and do a thorough inspection, as well as reviewing recent sales of similar properties in the area.  It’s a better indication of current market value.

A valuation report gives you comfort that you are not paying too much.  A satisfactory valuation is a common condition that is added to many offers.  In addition, it may be required by the bank as an indication that the property is worth what you are offering for it. 

To find a valuer:

• Visit the New Zealand Property Institute website and find a registered valuer in your area
• Ask for recommendations from friends or family 
• Talk to the bank, your lawyer or real estate agent as they may be able to recommend one
• Check your local Yellow Pages under valuers.

When you’re looking for a valuer, here are some questions to ask them:

• Do they normally do residential work?  What experience do they have?
• How well do they know the area of the property?
• Do they fully inspect the property (measure the size of the property, report any defects, etc)?
• What is their fee and what does it cover?
• When can you expect their report?  Ask to see a sample report
• Do they have any alliance or association with any of the parties involved?
• Do they hold professional indemnity insurance?
• Are they available to discuss the report once completed (for example if you have any questions)?

Fees:

• A full valuation report should cost around $360 - $500
• Alternatively, if you don’t require a full valuation report but still want to get an idea of a property’s worth, you can access a range of online reports from Quotable Value.  Prices for these reports start from $34.95 for an E-Valuer report to $69.95 for a Essential Property Guide.  (Please note that these reports are not accepted by the Bank as a registered valuation)
• If you are just after the Rateable Value – you can find this out from the Council’s website and it is free.  You can use your preferred search engine to find your local Council.

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