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.
New RVs were released in late 2022.
New average RVs (residential*):
Christchurch – $774,000 | Waimakariri – $749,000
So, when a property RV is very recent, you would expect it to be good indication of what the house is worth if it was to sell soon… but not in our current market.
As the new RVs have been formulated with peak market pricing data (late 2020 and mid-2022), and now that sales prices have started to slowly decline, the new RVs do not necessarily reflect current market value (what someone is willing to pay for a property).
This will vary from property to property depending on the property condition, specs, landscaping and the suburb.
So, when looking to purchase a property it’s not always a safe guide using the RV as price indication. The listing 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.
* Data and information sourced from REINZ and QV