Understanding market valuations — your questions answered


Posted 20 months ago by Pope & Co. Mortgages

Guest blog by Hayley Dabinette, Registered Valuer & Property Consultant
Wilson Hurst Property Valuations (Wellington) Limited

Whether you are buying, refinancing or selling, obtaining a property valuation is often a necessary and helpful step in the process. We understand that the topic of valuations can be a little perplexing, so we’ve put together this handy guide to answer some of your most common valuation questions.

What is a market valuation?
A market valuation is an independent assessment of the current market value of a property as at a set point in time (most commonly the date that the valuer inspects the property). This is the price that the property would most likely sell for on the open market at that particular date.

Why should I get one done?
Market valuations are often required for a number of different reasons, for example, when securing finance, refinancing or when selling your property. Obtaining a market valuation is often a condition of finance that lenders require when you apply for a mortgage.

Valuations are helpful as they identify issues that may affect a property’s value, as well as help to ensure that a property is realistically priced before being listed on the market.

Who carries out a market valuation?
Market valuations can only be carried out by a registered valuer. In New Zealand, registered valuers are governed by the Valuers Registration Board and must hold an annual practising certificate.

Why can’t I just get a real estate agent to tell me the value of the property?
Real estate agents can provide you with an appraisal, but this is not a registered valuation. To obtain a valuation of a property, that meets the banks or other lending institutions requirements, a registered valuer who holds an annual practising certificate must carry out the valuation.

How Is the market value calculated?
A market valuation requires a full inspection of the property by the valuer and analysis of sales of comparable properties within the locality, including sales of vacant land. The registered valuer uses their local knowledge and expertise to arrive at a final value for the property.

What's the difference between a rating valuation and a market valuation?
A rating valuation is used for council rating purposes only and is carried out via mass appraisal every three years. These values are essentially a snapshot in time of a property’s value i.e. what the property would have likely sold for as at the date of the council’s last revaluation. These are not market values and can be much higher or lower than a property’s true value. They don’t include chattels and are only as accurate as the information that the council holds on a particular property. In addition, as they are only carried out once every three years, the values become out of date very quickly, especially in a moving market.

What factors are considered when determining a property's value?
A number of factors are considered by the registered valuer when determining the current market value of a property. These include but are not limited to:

  • Floor area of dwelling and number of bedrooms;
  • Section size and contour;
  • Land tenure and any interests noted on the title;
  • Location – proximity to amenities, views etc.
  • Condition of the interior and exterior of the property;
  • Quality of internal fitout including any renovations which have been carried out;
  • Zoning;
  • Environmental factors such as flooding, overlays, fault lines, etc.


Need a registered valuation for a property in Kapiti or the greater Wellington Region? Contact Hayley Dabinette at Wilson Hurst Property Valuations (Wellington) Limited.


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