Assessing Worth: The Benefits of a Property Valuation

A property valuation provides critical financial insights and supports informed decision-making in real estate transactions.

Deciding what a property is worth can be a complex aspect of buying and selling property in New Zealand. Often first home buyers can be confused by the overload of information available online – CVs, RVs, GVs, TradeMe estimates, Homes.co.nz, One Roof, Property Value, QV to name a few. Valuing property in New Zealand can involve several methods, depending on the purpose (buying, selling, investment, or compliance).

There are crucial distinctions between a registered valuation and a real estate agent’s appraisal:

A valuation report can only be prepared by a registered valuer. A registered valuer will have undertaken formal education and have significant experience to be able to arrive at a definitive value for your property, taking into account a wide range of factors. The valuer is legally responsible for his or her valuations and will base it on evidence and information about the property (having viewed it), the market, Council zoning and any legal issues. A valuer charges for their services.

An appraisal can be done by a real estate agent and is an indicative estimate based on recent sales of properties in your region. It is not an exact indication of the realisable property value and appraisals by different agents can vary. An agent does not typically charge for an appraisal – it is often seen as part of their relationship building. An agent is also not legally responsible for the appraisal.

Which approach you take will be dependent upon what you intend to do with your property.

If you are looking to sell the property, then the market will determine the value of the home and obtaining several real estate agents’ appraisals may help you decide on an agent to list with.

If you are seeking to buy a former spouse’s share of the property, then a registered valuation should be obtained as it will enable you to make an informed decision about the purchase price to be paid. Many banks require a registered valuation as a condition of finance.

Call us today for a confidential chat about what approach may be best for you.