Needing to know what your house is worth for selling, buying, insuring or re-mortgaging purposes? Then make sure you get the right type of valuation, fit for purpose.
Everyone wants their property to value up as high as possible when selling (and value low as possible for rates purposes).
If getting insurance is the reason, it's no less important that you get a thorough valuation done.
Consumer NZ reports that in research conducted by Treasury, up to 85 per cent of homes could be under-insured by 28 per cent. If you are buying a property, take heed of this and get it checked.
Not Sure What My House Is Worth?
With so many valuation services and options available, make sure you choose the right valuation for your purpose.
If you are selling your home, first get some valuable insight into pricing your home accurately and where you can add value. Clink on this link to find:
- 4 key factors that get the best sale price
- the peril of an inaccurate market appraisal
- 6 recommendations to optimise sale price
- choosing the best method of sale
- should you get a registered valuation?
If the property valuation is incorrect, the consequence could be losing money if selling, or paying too much if buying.
A word of warning: When you set out to find what your house is worth it pays to use an independent valuer, and if another party is going to rely on a valuation you have had done, the valuer should address another copy of their report to that person (with your approval since you paid for it).
If they don't, there may be no comeback if it's incorrect.
Protect yourself by using a registered valuer.
The Property Institute of New Zealand is the leading professional body for standards, qualifications and ethics across all facets of the property professions.
It has also introduced a Quality Assurance and Accreditation Scheme.
Valuation firms accredited with the Property Institute are the safest place to find a reputable property valuer.
What's The Right Valuation Option For You?
Terranet is a completely automated but very comprehensive in how it establishes values. You can see the different levels of property reports available at Terranet, including the prices and useful legal documents like Titles, Surveys, Building Consents and Boundaries.
Online Valuation Algorithms Less Reliable
Rating Valuations (RVs) are intended to be indicative of house value rather than actual, and are mass produced for the purpose of establishing council rates.
They don't always take into account unique properties, improvements, extensions or other indicators that may increase the value.
An e-valuation is an online estimate using recent, comparable sales data from the area.
Bear in mind, agents
In-person Valuation Reports More Reliable
A property that has been visited, inspected, researched and reported on in full by a licensed valuer is deemed by us as the most reliable valuation if you want to know what your house is worth, especially for properties that have had improvements/renovations or other developments that may impact on its value.
This is considered by the Property Institute, as the most reliable way of establishing a home's worth, the sale price range for selling, or a value for insurance purposes.
Wise Up Alerts
When reviewing valuations, you may need help deciphering legal jargon, acronyms and terms. The NZ Law Society, would likely be the most reliable source for legal definitions you could use, related to property.
Some properties however, can be hard to indicate a price for due to the uniqueness of the property or location, or both. While many sellers believe they 'know' their property's worth, it might pay to get a registered valuer to conduct a professional valuation so you have data to rely on.
Unrealistic price expectations by sellers is one of the leading causes why properties don't sell first time around, or second time either and many of these have been in receipt of offers very close to the seller's price. If you're unsure, investing in a full valuation could be gold.
Legal processes and documentation are best handled by a property lawyer. The NZ Law Society has established a database of relevant professionals and all you need to do is select your region to get a list for your area.
If you have a lawyer already, tell them first what you are doing.
You might also like:
- Caution about valuation promises
- Ways to maximise the equity from your house sale
- Quick Link to getting an agent's appraisal