What You Need To Know
There are so many different types of valuations, but the one we deal with the most in our line of work are Registered Valuations, or quite commonly referred to as an RV.
What is an RV?
This is where a Registered Valuer will go out to the property, and take note of lots of specifics – things like the condition of the property, the age, the size, the features etc. Then they will research properties that have been recently sold in the area, as well as properties that are comparable in size and age and then they are able to produce a value that they think your property is worth.
Valocity is a company that we use most often to organize those valuations. They are a third party, bank-approved system that matches registered valuers with properties. The banks will require an RV to be arranged like this in order to mitigate any ability for a purchaser or owner to contact their brothers’ mate who completes valuations and ask him to “bump up the value a bit”.
Registered valuations are little more expensive than they used to be, but everyone who gets one is in the same boat! For a standard residential property, we are seeing the quotes come through at about $800. That price will shift upwards if the property being inspected is a little more rural, or hard to access, and often is higher for builds as well.
Do I need one?
There are a few reasons why banks will request an RV, if your property is a...
- Private Sale
- A High LVR (less than 20% deposit)
- New Build/Subdivision
- Other anomalies that the bank deem worthy of an RV
What about a Desktop Valuation or Government/Council Valuation?
While these numbers might look accurate to what you are seeing around you, the bank will want to know that someone has been and inspected your property for the specifics. The specifics are not reflected in a desktop valuation, and that means they are not accurate enough for a bank to take as evidence of value.
What about the value listed on my banking app, or homes.co.nz or Trade Me?
These numbers are all based on algorithms that are given data by what has sold around you recently, or properties that have sold that are similar. They often have huge bands of difference (the gap between the lowest estimate and highest estimate).
We will only ever ask clients to get a registered valuation if the bank requires you to have one. We are all about saving you money around here and don’t want you spending money on something that isn’t required.
If you do need one, our team will organize them through a bank-approved third party, and the advisors will walk you through the process, so no need to worry!