What is The Rateable Value?
The Rateable Value or RV is...
The RV is the rateable value or the 'value' of a house set by the local authority for the purpose of determining and allocating rates. It is calculated every few years based on the general value of houses in the area and some key house statistics. RV can be a confusing term as there are many ways of referring to the value of a house. The RV is also sometimes known as the government valuation (GV) or capital value (CV). A registered property valuation done by a registered valuer is not an Rateable Valuation (RV). You can find registered property valuers here.
Is the RV a Price Guide?
Real estate agents often mention the RV in advertising, most often this is because people like to know the rateable value! But sometimes it is because the real estate agent or home owner feels that the RV is a good indication of the market value of the house. The RV's relationship to the market value of the house is ultimately up to you to decide, here are some things to consider:
The rateable value doesn't usually take into account anything that makes a property better or worse than others in the area, for example condition of the house and land, chattels included, landscaping improvements, and so on. Sometimes the RV is a good rough-guide of value but other times it is completely irrelevant.
An RV can be very out of date! RV's are done at least every 3 years - this can be a long time in the property market. Check the date of the rateable value - it may be 2+ years old - and not relevant in the current market. As a rule, you should only use the rateable value in combination with other information, like your own experience or a registered property valuation. If you are looking for the rateable value of a house - you can find out rateable value information on your local council's website for free.
Can the RV Be Wrong?
Sometimes an RV can seem wrong, especially when a house has been very recently renovated, or when a property is unusual. Home owners can choose to get their house's RV re-assessed by the local council if they feel that it is incorrect (too high or too low). If a house has had recent renovations that required a building consent (especially if there has been an increase in the floor area of the house) the house will be automatically visited by a QV valuer and the RV adjusted appropriately.
the Market Value...
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a Market Valuation?...