Auckland City Council 2011 CV Revaluation
This month Auckland City council release their latest 2011 CV or Capital Value figures for all properties.
The CV document posted to all households will state that the CV is “the assessment of the probable price that would have been paid for the property if it had been for sale on 1 July 2011“
Unfortunately house buyers do tend to use CV as a guide to value when the figures have just been released therefore if you are considering selling over summer it is important to object to your CV and request an increase if you think it is far too low. If you plan to remain in your present house and you think your CV is too low don’t worry about it as you will enjoy lower rates in the meantime but if you do have a change of mind and decide to sell the lower CV could come back and bite you!
When the 2008 CV figures were released we analysed all of the recent sales in our area and the results tended to indicate that the CV figures are inconsistent and bore no relation to sale prices achieved either before or after July 1st 2008. One example we sold for $740,000 had a 2005 CV of $630,000 but a 2008 CV of $580,000. So we sold it for $160,000 more than it’s 2008 CV – hard to believe the Council can get it so wrong!
Here is a sample of the results of our study from 2008 – all of these sales took place in our area just after July 1st 2008:
2005 CV 2008 CV Recent Sale +/- CV
$ 285,000 $ 335,000 Sold $ 347,500 +$ 12,500
$ 400,000 $ 420,000 Sold $ 397,000 -$ 23,000
$ 430,000 $ 530,000 Sold $ 480,000 -$ 50,000
$ 420,000 $ 520,000 Sold $ 467,500 -$ 52,500
$ 580,000 $ 600,000 Sold $ 523,000 - $ 77,000
$ 400,000 $ 500,000 Sold $ 567,000 +$ 67,000
$ 670,000 $ 610,000 Sold $ 589,000 - $ 21,000
$ 520,000 $ 550,000 Sold $ 607,500 +$ 57,500
$ 680,000 $ 690,000 Sold $ 685,000 -$ 5,000
$ 600,000 $ 640,000 Sold $ 690,000 +$ 50,000
$ 570,000 $ 700,000 Sold $ 750,000 +$ 50,000
$ 630,000 $ 580,000 Sold $ 740,000 + $160,000
$ 580,000 $ 670,000 Sold $ 753,000 +$ 83,000
$ 710,000 $ 720,000 Sold $ 760,000 +$ 40,000
$ 760,000 $ 780,000 Sold $ 770,000 -$ 10,000
$ 630,000 $ 820,000 Sold $ 902,500 +$ 82,500
$1,150,000 $1,290,000 Sold $1,016,000 -$274,000
$ 880,000 $1,130,000 Sold $1,090,000 -$ 40,000
So comparing this selection of actual 2008 sales we can see wide variations with homes selling for as much as $274,000 below the latest CV to $160,000 above CV with only two of this selection being within $10,000 of the 2008 CV figure. This is only a small sample but it certainly shows that in the local area we operate in your latest CV will be no guide to the potential sale value on the open market.
When you receive your 2011 CV in the post later in October please feel free to contact us to arrange an appraisal and find out whether or not your 2011CV bears any resemblance to market value.
Call Lawrence 027 2279294, Derek 0275 337357 or Ross 0274 755977
October 01 2011 12:27 pm | Uncategorized