Selling Price Vs Rateable Value in Nelson

October 11th, 2010

Much has been written about how the various territorial authorities / regional bodies around New Zealand arrive at their rateable values.

There’s even been quite some discussion on here regarding the situation, and specifically, how property buyers see a selling price in comparison to a CV, or rateable value.

In most cases the process/work of setting the parameters / algorithms / etc has been conducted by outside bodies like Quotable Value (QV) NZ.

In many location’s around NZ, but more specifically in those that attract many buyers from outside of town (read places like Nelson, Tauranga, Queenstown etc) property buyers are constantly drawing parallels between the two.

So rather than repeat what has already been written, and in light of seeing quiet a few “outsiders” miss out recently, I thought that around ’bout now……might be quite an opportune time to assist those buyers looking at property in Nelson…with the following chart.

Reasonably self-explanatory, you can see that just 4 properties out of all the properties sold in September 2011 were actually sold at the CV, the rest fluctuated from 11% under the CV to 27% above it.

In case you wanted just a bit more detail, 18 (23%) properties sold for at least 10% above, 33 (42%) at least 7.5% up and 42 (54%) for at least 5% above the Nelson City Council capital value.

At the other end of the scale 12 (15%) sold below CV.

Hopefully for those out of town buyers NEW to the Nelson market that are offering CV as a buying price, you can now see in black & white, one reason (well, quite a major one really) why you may not have been successful so far.

If you want to know any more relevant data….perhaps more specific…….you know who to call.

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UPDATE 10:25pm Monday 10th Oct……seems a few Nsn properties are going quick…..new listing in Stoke had all Summit agents (yup ….well just the 37 local Nelson ones that is) …..view the property last Friday just after lunchtime when it first became officially avail. to the market…in an “agents inspection” sort of way….property under offer shortly after…property unconditionally SOLD today. I’ve heard it said before…..the “power of the team.” Don’t under estimate it folks. NB: my first sentence has more evidence than just this one to back it up, but like Ollie or Bernard suggest….its really only history that will show the difference.