What’s a CV or GV or RV ? and should it matter ?
CV - Council Valuation, GV- Government Valuation, Ratable Valuation all meaning the exact same thing. I prefer to use RV.
Every three years, homeowners can expect these RVs, which are basically estimates cooked up by the council to decide how much you owe in property rates.
What's the Deal for Sellers:
Now, RVs have been catching some flak for being a bit out of date in this fast-moving market. Some buyers still mistakenly use them as a guide for home prices. But here's the thing: RVs should really only be used as a rough idea for setting local rates. They're not meant to be the Holy Grail of property pricing. But when there's a lack of recent sales data, like for new homes, outdated RVs can be a real head-scratcher for both buyers and sellers.
Mostly I have notice that RVs can sometimes leave buyers scratching their heads, especially when the market is hopping and prices are jumping all over the place. In a pinch, buyers might turn to RVs for a ballpark figure when there's no fixed price. But here's the kicker: relying solely on RVs can be hit-or-miss. They often don't give you a true picture of what the property's really worth. Us real estate folks use a bunch of fancy methods to figure that out, and it's way more than just a computer-generated guess.
Seasonal Swings:
Now, these housing re-evaluations are a reflection of the overall market, which has been feeling a bit uncertain. But there's a silver lining – we're seeing signs that the residential market is picking up again. The Real Estate Institute of New Zealand (REINZ) stats from August 2023 show some optimism and more action in the property world. While listings are still kinda scarce, they're up compared to July, and more homes are getting sold. Looks like confidence is making a comeback as in mid spring.
Thinking Outside the Box:
In Christchurch, they've got a whole different system for figuring out RVs. They couldn't rely on an accurate database to account for properties affected by certain events, so they came up with what they call an 'honesty system.' Homeowners had to 'fess up about damage to get a more accurate property value.
But here's the thing about RVs: they're calculated without even peeking at the actual property. They don't take into account things like a killer view, the state of the place, or whether there's parking. It's a bit like trying to rate a book by its cover.
For real estate agents, these new RVs are a chance to educate both buyers and sellers about how to get a handle on the real market value. They use all sorts of tricks like checking out the place in person or virtually, looking at what's sold in the neighborhood, and having the lowdown on local plans and community stuff. It's way more than just glancing at a RV.
In the past, people might've leaned on RVs because they didn't have much else to go on. But these days, there's a ton of sales data floating around. So, it's safe to say that RVs aren't the go-to source for figuring out property values anymore, especially in this fast-paced market. We're betting that the new generation of buyers and sellers will be looking beyond RVs for a more accurate picture of what their place is really worth. The best start is to use jograms.co.nz ‘ what’s my property value’ , though at the end of day - your property is only worth what someone is prepared to pay for it.
Happy Tuesday ,
Jo