You’ve heard of Property RV before and you know the RV of your property, but what is it really and what does it mean when buying or selling a property?
A property RV stands for Rateable Value or Rating Value, it is determined by your local district council who use it to calculate how much they should charge for council rates. These values are updated every three years. The council aims to have the property RV reflect the market value (how much buyers are willing to pay for a property), although as the market can change very quickly, these values don’t always reflect the market value for very long.
So, when a property RV is very recent, they are generally a good indication of what the house is worth if it was to sell soon. The current RVs across New Zealand are more than two years old and do not reflect current market values.
In the last six months, houses across Canterbury sold at 53% above RV (industry average). This indicates that at the moment, RVs don’t have a lot of meaning or value when selling or buying a property. The RV is not reflective of what Canterbury properties would sell for if they went on the market today.
Some recent home sales in North Canterbury have been 26% above RV and some have been up to 95% while in Christchurch it has varied greatly too with homes selling from 33% to over 100% over the RV price. This goes to show how the RV can’t be used to gauge sale prices at the moment.
A little shameless self-promotion here, our last nine sales average at a whopping 67% above RV!
When looking at a property to purchase, the salesperson will be able to provide you with a price range based on feedback that they have received from potential buyers. If a property has had renovations or significant enhancements made this is usually a good indication that the home will sell above RV as the value of the home would have generally increased.
When looking to sell your property, the easiest way to find out how much your property could sell for is to get your property appraised by a Real Estate Agent that you trust. They’ll figure it all our for you, even if you’re not ready to sell yet.
If you want to know the value of your home in today’s market, you can contact us for a free, no-obligation property appraisal.