Property Institute urges regular check on home values

Property Institute urges regular check on home values

Property Institute of New Zealand Chief Executive, Ashley Church, has responded to recent publicity calling into question the accuracy of Council Valuations (CVs) in high price growth areas such as Auckland and Christchurch.

The Property Institute represents all residential valuers in New Zealand and Mr Church says that the recent criticism demonstrates a misunderstanding of the role of Council valuations.

“CVs are conducted, on behalf of Councils, once every 3 years as a basis upon which to set rates and, as such, they’re a ‘snapshot’ of the value of any given property at that moment in time. They’re not intended to provide an ongoing price guide - particularly in a fast rising market”

Mr Church says that, for many people, the Council valuation of their home is matter of curiosity and academic interest – but he says that there are some circumstances under which a home owner should always seek an up-to-the-minute valuation.

“If you’re selling your home or wanting to use the equity in it to borrow money it’s important that you get the most up-to-date valuation possible. This will put you in a stronger bargaining position if you want to sell – and any increase in value could give you more clout with the bank if you want to borrow money to make a purchase or buy a business”.

Mr Church says that many people may not be aware just how much the value of their home has increased since the last Council Valuation.

“Knowledge is power”.

Mr Church also says that the need for up-to-date valuations isn’t confined to Auckland and Christchurch.

“If you live in an area where house prices are rising – a recent valuation could be worth tens of thousands of dollars to you”.

Ends

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