Publication:

Napier Courier - 2021-06-09

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What’s my home worth?

NEWS

Malcolm Cox malcolm@coxpartners.co.nz

When it’s time to sell, it can be difficult to be rational about what your property is worth, particularly when you have a strong connection to your home. How can you determine the value of your home? Rates Value - Unfortunately, the rates value or RV doesn’t really provide any clues. These valuations are done by the local council to work out what share of rates a household should pay. They are only done every three years and may not account for work done to improve the property that did not require consent from the council. Online valuations - There are now several online valuation tools which provide an estimate of your homes value. Examples include Trade Me’s Property insights, OneRoof, homes.co.nz and propertyvalue.co.nz. These sites use the council RV data as their starting point and apply an algorithm to account for factors influencing value. They offer a very broad estimate. Their weakness is that they can’t recognise the condition of your property or improvements made. While, the estimates these sites provide is interesting, they should only be used as the starting point, as they don’t show the full picture. Registered valuers - You could purchase a formal valuation from an independent registered valuer. Generally, a formal valuation will provide a pretty good guide to what your homemay be worth – although it comes at a cost and some valuers are unreasonably conservative in their assessment. The Property Institute, which represents valuers, says a registered valuation can help sellers be more objective about their property’s worth. The strength of using a valuer is their independence. Real Estate Agent Appraisal - Before selling your home, a real estate agent MUST provide a written assessment of the value for your property – a current market appraisal or CMA. The process is like that used by valuers - it’s based on the agent’s knowledge of the area, what similar properties have sold for and the condition and particular characteristics of your own property. One of the risks is that some may agents inflate your price, to win your business. That’s why you should always ask your agent to back their assessment with a written guarantee – if they get the assessment terribly wrong – you shouldn’t have to pay their fee. Ultimately, the true value of your property is what a good negotiator can persuade a willing buyer to pay. The ultimate skill you require from your agent is that of negotiation. We recommend you put this to the test, and have your agent PROVE their skill as a negotiator. For more information about the value of your home call us on (06) 835-4321

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