The article includes comments from Simon Anderson, which indicate a property valuation – separate from council valuations – could be low to benefit a buyer, or high to benefit the vendor.
This implies a property valuation could be tailored or influenced by whoever is commissioning the work. This is most certainly not the case.
A property valuation is undertaken by an independent, registered valuer to provide an expert assessment of a property's value.
This takes into account all factors that contribute to the value of the property, for example, the current economic environment, other sales in the area, size and condition of the property. As part of the process, the title and other relevant council reports are also considered.
A registered property valuation is required for a range of different purposes, including providing an accurate assessment of the value for a buyer or a seller, but importantly, it is usually a requirement for a mortgage, refinancing, insurance assessment or for financial accounts.
In New Zealand, these must be undertaken by a registered property valuer.
Registered property valuations are not simply a case of putting a finger in the wind and coming up with an estimated price. They are based on hard facts and data, so that buyers, sellers, banks and others can make informed decisions about property investments.
Grant Utteridge
Telfer Young Rotorua