House-value checks for 7000

Mark (left) and Judith Pohn. Photo / Sarah Ivey

The task of inspecting 11,500 Auckland houses whose owners are fighting council valuations is nearly two-thirds complete.

The Auckland Council's valuation services team leader, Peter McKay, said registered valuers had visited, and in many cases been inside, 7000 houses throughout the city in the biggest revaluation exercise undertaken.

A further 4500 properties were yet to be examined, a task he expects will be finished around spring. Extra valuers had been contracted to assist.

But about 30 to 40 homeowners remain dissatisfied and are taking matters a stage further, lodging a court challenge. They could go to the Land Valuation Tribunal for a final decision if further negotiations with the council are unsuccessful.

Mr McKay said he was not concerned about the big gap between new valuations and sale prices, after a string of houses in desirable Auckland suburbs went for about twice their valuations.

"All sales at excessive variance to roll values are reviewed and inspected as part of our normal processes to ensure that our property information is correct," he said.

"These variances can often be accounted for by the fact that recent building work is not yet included in the rating valuation and/or market movement since the revaluation date."

Critics say all ratepayers miss out when properties are valued too low, but Mr McKay said the system was set up to cope with changes.

"Each year we update values where there are physical changes to properties, i.e., new building work and where new properties are created as a result of subdivision. In these instances the updated values are back dated to July 1, 2011 to maintain value relativity with all other properties," he said.

This was the fairest system.

In October, homeowners began complaining about the new valuations, citing significant disparities in their areas and saying they were puzzled and angry about low or inconsistent valuations.

Residents from Mission Bay to Takapuna accused the council of under-valuing their properties and damaging resale chances

Judith Pohn, of Mission Bay, said her house was in good condition, and she could not fathom the valuation plunge from $690,000 to $550,000 when she sought to sell for $734,000.