Also known as Capital Values. The period when the new valuations come out is a pain in the proverbial for real-estate agents, because they are just so inaccurate. They are provided to Councils for the purpose of setting rates for that property. Whangarei’s rates are based on the land value of the property plus a few specific factors such as kitchens in the dwelling. When QV work out the valuations they try extra hard to get the land value right because that’s what the W.D.C. are paying for. This part of the rating value is probably right, although we would never know because we don’t break a house sale down into land and buildings. The house value is not as important to them and generally they go off the information held by the W.D.C. on their property files. They don’t visit the properties, so at best, the final house valuation is a rough guess. The council pays just a few dollars per valuation so they get what they pay for… a cheap valuation.
Quoting directly from the QV “Understanding your Rating value” sheet, they admit it .. “Every three years rating values are assessed… using a mass appraisal process”. Translate “mass appraisal” to “computer model” and you have the picture.
Rating Advice #1.
If you think the valuation is too low take the opportunity provided to challenge it, but remember you only have until the 10th of December this year to lodge your objection. You can do it online. I think it is better to get the valuation into line with the properties real value once, (and why not this time), and then it will stay in line in future valuations. It does pay to have the valuation reflect the value because if you ever sell and it low ,you can bet your buyer is going to beat you over the head with it. I’m happy to help with the research to assist your objection.
Rating Advice #2.
Don’t challenge the land value , challenge the house value because it’s an easy price to get up and because the valuers haven’t actually looked inside the house and the house value won’t affect your rates. By having the land value low and the house value high you get a higher valuation without putting your rates up. There are some cases where the land value is way too high and you should challenge it to gets your rates down.