NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Property

Diana Clement: True value of knowledge

Diana Clement
By Diana Clement
Your Money and careers writer for the NZ Herald·NZ Herald·
12 Sep, 2017 07:42 AM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Getting a valuation done can provide buyers and sellers with peace of mind. Photo / Getty

Getting a valuation done can provide buyers and sellers with peace of mind. Photo / Getty

Talking valuations is a bit like text speak. Unless you're in the know you probably haven't got a clue what RV, GV, CV, or LV means. Or even that RV means two different things: rating/rateable valuation or registered valuation.

Valuations are important if you're buying or selling, or insuring your house. But they come in different flavours.

The first to get your head around is the GV. That's the government valuation, which can also be called the rating valuation, rateable valuation (RV) or capital value (CV). This is the value of your property according to the local council and is used to set your rates.

It doesn't tell you how much the property is worth on the open market.

What's more, says valuer Rene McLean of Property InDepth, homeowners can object to the council's valuation within a certain timeframe and apply to have it increased or decreased.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

They may have done work on the property, think it's worth more now, and want the market to know. Or they may apply to have it downgraded to reduce their rates bill.

If either scenario happens, it puts the value of that property out of sync with neighbouring properties.

Twenty years down the track when the renovation or decoration are old, tired and dated, the property still has a government valuation that could peg it above the value of newly renovated local properties and vice versa for those that the owners had downgraded, says McLean.

Advertisement
Advertise with NZME.

GVs are revalued every three years. The next revaluation in Auckland will be in November this year and be based on recent sales.

As Auckland Council points out, the exercise is not to provide property owners with valuations for use in marketing their properties.

Nonetheless, it gives an indication of where the property is pegged in its neighbourhood.

To find out the market value of your property you need to get a valuation from a valuer registered with the Valuers Registration Board and holding a current Annual Practising Certificate.

A registered valuation takes into account the property type, location, land size, zoning, floor area, consented work and so on, and is an assessment of the market value.

It can be useful in setting a sale or purchase price. Banks and other lenders always require a registered valuation before they will lend on a property.

Be careful, says McLean, if you do need a mortgage to check that the valuer has been assigned through Core Logic or Valocity, which makes it bank approved, or you might end up having to pay for a second valuation to satisfy the banks.

That's because a new system called the Valuation Ordering System means that banks require that the valuer is assigned by Core Logic or Valocity. The system is independent and removes a lot of risk involved in the valuation process.

Vendors who don't want to pay for a full valuation can get an eValuer report from QV or iVal from Valocity.

These instant electronic valuations cost between $45 and $50 and use recent sales of similar properties in the area and look at the individual property attributes to model its valuation as at today along with key data including the details of comparable sales.

Advertisement
Advertise with NZME.

The results are tested regularly against actual property sales from the past six months to ensure they don't fall outside a standard deviation.

But it isn't going to be as accurate as a valuation from a trained valuer who visits the property in person and evaluates it warts and all. For that you'll pay around $625 including GST for a standard property says McLean. It can be money very well invested if it stops you paying over the odds.

For vendors, a registered valuation obtained and paid for by yourself or an evaluation is a bit of an insurance policy against being taken to the cleaners by less reputable buyers.

Several such cases have hit the news pages of the Herald where vulnerable vendors were offered much less than their properties were worth.

The other main type of valuation, says McLean, is an insurance valuation. This is a valuation that shows the cost of rebuilding your house should it be destroyed.

The cost of rebuilding can be very different to a GV or RV. For example, a property where the "improvements" involve a leaky home may not be worth much more than land value (LV). If the house was destroyed by fire, for example, it could cost a couple of hundred thousand dollars to rebuild.

Advertisement
Advertise with NZME.

Some people rely on online calculators provided by insurance companies for their insurance valuation. These calculators are not as reliable as an insurance replacement valuation by a quantity surveyor (QS).

If you have to fight your insurance company over the cost of rebuilding, the valuation from a quantity surveyor will have more weight than one from a former real estate agent or builder or an online estimate.

Save

    Share this article

Latest from Property

Property

'Over 200mm of rain in 24 hours': Buyers hammered on costs told not to skimp on insurance

08 Jul 06:00 PM
Property

Beach elite trading up for the hot suburb next door

08 Jul 08:28 AM
Property

$1m deceased estate overlooking prestigious golf course for sale

08 Jul 08:15 AM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Property

'Over 200mm of rain in 24 hours': Buyers hammered on costs told not to skimp on insurance

'Over 200mm of rain in 24 hours': Buyers hammered on costs told not to skimp on insurance

08 Jul 06:00 PM

Brokers recognise bills are rising, but “when things go wrong, you just have to have it”.

Beach elite trading up for the hot suburb next door

Beach elite trading up for the hot suburb next door

08 Jul 08:28 AM
$1m deceased estate overlooking prestigious golf course for sale

$1m deceased estate overlooking prestigious golf course for sale

08 Jul 08:15 AM
'Expectation gap' dividing buyers and sellers in South Island's biggest city

'Expectation gap' dividing buyers and sellers in South Island's biggest city

08 Jul 06:45 AM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP