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Thread: Value of a house

  1. #1
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    Default Value of a house

    I need some help understanding house prices/values. We have talked to realtors who say something like the GV is 370,000 but it will sell for 500,000 or so.

    First off, what is the GV and how is it related to the price? Second how do you figure out what the fair value of a house is? Are there services that tell you what houses have sold for? Given that buyers have no representation that I can find how do you figure out what to pay for a house?

    Thanks!

    Chris

  2. #2
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    Chris

    My understanding is that the rateable value is always much lower than the price asked and is the figure used to sent the rates for the property. So the 370,000 would be the rateable value, while 500,000 would be the asking price.

    With regard to how much a property is worth, well I guess the answer is as much as the seller can get. Agents usually have a feel for what prices properties are going for in a given area, based on the number of bedrooms and state of the property. However it is usual for the seller to state how much they wish to get for the property and the agent will guide them.

    There are real estate valuers in NZ and they may be the best bet for getting a realistic price for a property.

    Dave

  3. #3
    Join Date
    Apr 2005
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    Sumner, Christchurch NZ
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    Quote Originally Posted by acisman
    My understanding is that the rateable value is always much lower than the price asked
    Not necessarily - it depends on when the GV was last reviewed. In Chch this was within the last year, so prices aren't now as adrift of the GV as they were 12 months ago.

    A registered valuer will do a valuation for you which will give examples of recently sold properties in the locality for about $300 which could be a good idea if you don't have a feel for the local market and/or don't trust the estate agent.

  4. #4
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    I understood the rateable value was the value of the land regardless of the house on it. anybody else heard that

  5. #5
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    Quote Originally Posted by veronica
    I understood the rateable value was the value of the land regardless of the house on it. anybody else heard that
    In Chch the value is split between land and improvements, with improvements = building.

    See http://ratesinfo.ccc.govt.nz/index.aspx

  6. #6
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    On the house we are buying for $375,000 the LIM lists the land value at $53,000 and the capital value as $178,000. Make what you can of that.


    Pam & Dave

  7. #7
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    Quote Originally Posted by GeorgeM

    A registered valuer will do a valuation for you which will give examples of recently sold properties in the locality for about $300 which could be a good idea if you don't have a feel for the local market and/or don't trust the estate agent.
    You can also buy local house sales data from Quotable value (www.qv.co.nz)

  8. #8
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    Thanks for the info. I have a feeling this will take a lot of learning on my part to get comfortable enough to be at the point where we feel we are getting a fair value for a house.

    One more question when they say BBO 430,000 (buyers budget over) I am guessing that is sort of a point of negotiation so they are looking for around 430 or are they looking for significantly higher? I have seen some BBO's listed now for a few months so they are not moving all that fast.

    Chris

  9. #9
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    Not sure if this will help, but it's a link to a glossary of terms from the Real Estate Institute of NZ:

    http://www.reinz.org.nz/reinz/public...erminology.cfm

  10. #10
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    Apr 2005
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    Levin, Horowhenua (ex Yorks)
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    If the GV is somewhere near the asking price i thought it meant that the house wasnt in a particularly good area

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