House Market Value - Working it Out
A House Valuation is Not Guesswork!
A lot of analysis goes into a registered valuation report. A property valuer has to be confident that the market value they work out for your house is right, as people depend on their assessment and, legally, they can be held responsible if they get it wrong. You can find registered property valuers here.
The Five Methods of Property Valuation...
The 'five methods of property valuation' are often referred to in relation to property valuation techniques. Of the five methods of property valuation, one or more will be used to work out a houses value. The most likely of the five to be used are the comparable sales technique or the investment/income technique.
Use of Housing Market Statistics
Property valuers can rely heavily on official house statistics put out by QV. These statistics represent house sales that were agreed (i.e. the price negotiated) an average of 2 - 3 months ago. The real estate market can have moved significantly in this time frame. A good property valuer will take time to investigate recent house sales that may not be included in the official real estate statistics.
What About My Opinion of the Market Value?
If there are any house sales that you would like your property valuer to consider, as you feel they provide a good comparison or reference point for the house you are getting valued, then tell your valuer. They do not have to use this information for the valuation - but the likelihood is that because you are closely involved with the housing market in your area, you will have some extra knowledge that could be of use to your valuer.
Wondering What Value Renovations Could Add?
Property valuers can also help you out with estimations of what a house could be worth after planned renovations. You can provide a valuer with a brief of your plans and they can give you a post renovation estimate of house worth that can help you work out if an investment in renovations is worth it. Find a registered property valuer for advice.
the Rateable Value?...