What does it all mean?
You’ll notice I generally talk about the CV of a property in my posts.
CV stands for Capital Value and this is the amount appraised or assessed by Quotable Value NZ on behalf of the relevant local territorial bodies, or councils.
If you gain consent for any improvement work to the dwelling, well that dollar figure you put on the form for the improvements, then this is added in for the next estimation period.
Conversely if improvements to your dwelling haven’t been evaluated by council or QV then you may fall into the camp in which your home CV value is much lower than your perceived personal value once that improvement work has been completed.
They then use this calculated estimate amongst others in their matrix to formulate a total rateable value upon which they base the amount of rates you will pay.
In the past CV was known by its older cousins, GV – Government Valuation or RV – Rateable Valuation.
CV is typically updated approx. every 3 years
CV is not to be confused with a Registered Valuation.
A Registered Valuation is what a professional qualified Registered Valuer conducts on a property to arrive at its current “on the market” valuation.
So to conclude;
1] a registered valuation is to give you a market value.
2] CV is a figure for the territorial authorities – and often does not reflect true market value.
Some of Nelsons Valuers publish newsletters – If you want to be kept up to date with news from a Valuers point of view check out these;
Duke & Cooke – Quarterly Newsletters
It’s a bit alarming to hear via a comment that a bank was using the QV figure, interesting in light of these other comments here, to assess a loan application. Surely a Registered Valuation is the only way to do that.