What is rateable value, capital value, government value and market value? A question frequently asked and confused by many.
In New Zealand the rateable value (RV) is the value set by the local authority or council in order to determine rates for a property. The RV is also known as the capital value (CV) or the government valuation (GV) in New Zealand.
In New Zealand, the RV doesn’t usually take into account anything that makes a property better or worse than others in the area. For example, the condition of the house and land, chattels included or landscaping improvements.
Sometimes the RV can be a rough estimate of the value of the property . Other times it’s completely irrelevant. It’s important to understand the differences between rateable value, registered valuation and market price when comparing property values.
Rateable Value is generated through computer analysis. No one physically visits the property. So rateable value does not take into account any improvements made to the property.
This value can be up to 50 percent different (up or down) from what the property has sold for.
A skilled real estate professional can give you a registered valuation. They will utilise local knowledge of the area and review all sales records to establish a value. You can be more confident of the valuation if the agent has extensive industry experience.
What a willing buyer is prepared to pay for the property – it’s that simple!
In other words…
Rateable value is what you could pay
Registered value is what you should pay
Market price is what you end up paying
Call or email me anytime for a free no obligation chat if you have any property related questions.
Vinay Kumar 0275643112 or firstname.lastname@example.org
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