OCTOBER // 2019
Newsletter Harcourts Team Group Team Group Realty Limited Licensed Agent REAA 2008
Understanding Property Valuations
Whether you’re buying or selling, determining the value of a property is an important step in the process. A property valuation – an assessment of a property’s market worth – can help you set a realistic sale price when you’re selling and be a valuable tool when it comes to negotiating a purchase price when you’re buying. Here is a guideline to understanding property valuations. What is a property valuation? A property valuation is an independent assessment of the value of a property based on a number of different elements: the current market, recent sales, council information, size and condition of the property. A property valuation is done when you’re buying or selling a property and is often a condition of finance that lenders require when you apply for a mortgage. Who undertakes a property valuation? In New Zealand, property valuations are undertaken by a registered property valuer. Registered valuers must be certified by the Valuers Registration Board. You can find a list of registered valuers on the NZ Gazette website. What does a property valuer do? When valuing a property, a property valuer will: • Inspect the house inside and out. • Measure the dimensions of the house and rooms. • Note the building construction type and the materials used. • Estimate or find out the age of the house. • Rate the condition of the house. • Inspect the house inside including looking at walls, floors, ceilings, doors, design features, natural and artificial light, ventilation, exterior cladding, the roof, guttering, and fencing. • Take into account outstanding maintenance.
• Measure garages and note car parking and access. • Inspect the site noting any issues such as flooding, drainage, and subsidence. • Check out the immediate neighbours, the street, and the local area noting all the positives and negatives. • Work out the distance to the centre of town and look at the convenience of public transport. • Refer to the district plan and note the present use of the property in relation to its zoning. • Take into account the type of title. • Collect data about recent sales that can be used to value the property. • Make an assessment of marketability based on their observations. • Take into account the current state of the real estate market for that type of house in that area. • Prepare a written report. What is a property valuation used for? When buying a property, you should commission a valuer to undertake a property valuation before putting in an offer. That way any issues identified by the valuer can be addressed in the negotiation process and the document can be used to assist in negotiating the price. When selling a property, it’s important the asking price fairly reflects the true value of the property. A registered valuation will help you ensure the property is realistically priced before it is listed on the market.
Harcourts is the fastest growing and largest real estate group in New Zealand, with more than 900 offices across nine countries along with more than 6,600 sales consultants and a growing property management team. Please visit www.teamharcourts.co.nz for more information.
Interest Rates The team of mortgage advisers at Mortgage Express can advise you on all you need to know about applying for finance and the home buying process, as well as KiwiSaver withdrawals and HomeStart Grants for first home buyers. They’re also experienced at working with a panel of lenders so can connect you with the right lender for your unique situation.
This article was supplied by Mortgage Express
https://www.mortgage-express.co.nz/blog/understanding-property-valuations
Up 2.5%
Down 17.6%
Housing Stock
Inventory of Listings
Down 11.7%
LTA: 16
$707,101
858
1yr
2yr
3yr
5yr
Kiwibank Kiwibank Special ASB Bank BNZ – Std, FlyBuys BNZ – Spec Classic ANZ
5.15 4.30 4.24 4.74 4.74 - 3.55 3.49 3.99 3.99 5.20 4.15 3.99 4.39 4.69 5.30 4.45 4.35 4.55 5.15 - 3.65 3.49 3.99 4.45 5.19 4.15 3.99 4.49 4.85
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Source: New Zealand Property Report - September 2019
New Listings
Flt.
As of 07/10 /19
Wellington Property Statistics Property Asking Price
Lender
567
8 weeks
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While every effort has been made to ensure that the information in the publication is accurate we recommend that before relying on this information you seek independent specialist advice.
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