Valuation Rodney Ltd

Remove Doubt - Create Certainty on your Next Property Decision

Frequently Asked Questions

Buying or selling a property is not easy, we're here to help you with that decision...

Q: Why should I get a valuation?
A: Many lending institutions now require Registered Valuations for mortgage purposes, but often this is not the main reason.

Getting a valuation gives you peace of mind from an independent perspective providing a market assessment of your property's true worth. Ideal for establishing a value for auctions or tenders, or just getting an understanding on the property's potential sale price, for both sellers and purchasers alike.

Q: How much will it cost?
A: Prices vary, and are broadly based on location and nature of property. We are very competitively priced, and our comprehensive reports and market analysis represents very good value compared to others. Contact our Customer Services for more information.

Q: I am an investor/buyer from out of town, how will your reports help me?
A: Our reports are more than just a registered valuation.

Included are: detailed room by room breakdown; detailed regional and local market commentary; plenty of photos, both inside and out as well as photos of comparable properties used to establish the value; risk analysis of the property and the market, and current rental levels in the area if requested - ideal for investors and landlords.

Our reports are usually in excess of 30 pages, and include plain english explanations and definitions for each section helping you to gain a better understanding of the property and locality.

Q: Does Cost equal Value?
A: This would have to be one of the most common misconceptions around property values, especially for renovations and new builds. This can also be highly emotive as people can have different perceptions on what they value, and these perceptions are often at odds to the cost.

An easy way to demonstrate this difference is this. If you remove a reasonably good kitchen and spend $40,000 on a new kitchen, does it add $40,000 (the cost) to the value of the property? Of course not, because you are not taking into consideration the original value the previous kitchen added to the property.

It can also work in reverse - say you spend $4,000 on landscaping - does it add $4,000 value to the property? Quite possibly if you are improving the look and marketability of your property.

Some house projects can have a considerable amount of the build cost soaked up in foundation work, especially in difficult sites, which adds cost to the project, but does it add value to the property? A prospective buyer just sees a finished home without the appreciation of the cost and work involved in getting out of the ground, and will compare against other similar homes that may not have had this cost.

This is where the analysis performed by a property valuer is so important in establishing the true value of a property through knowledge and expertise of properties in the locality.

Q: How long does it take?
A: Fortunately, not days after the inspection like a lot of our competitors! We use the latest technology to compile our reports and deliver these to you via email - no waiting for a typist, fax or mail delivery! We can even forward these reports directly to your financial institution or any other nominated person as required.

Q: What's the difference between a Valuation and a Building Inspection?
A: Whilst we perform a visual inspection of the property, this is for us to establish a market value and guage its visual appeal for market purposes only.

We may comment in our report on some obvious, visible issues and how these may effect the market value of the property, however this should not be confused with a full building inspection.

A building inspection is performed by experts in that industry, and they can comment on such things as structural and weathertightness issues, including using non-invasive equipment such as thermal imaging.

For full peace of mind, a building inspection as well as a property valuation is sound advice.

Please refer to our Information Links page for building inspection companies we recommend in our area.

Q: Why don't I just use the Rating Value (Capital Value)?
A: The Capital Value, or Rating Value as its sometimes referred to, is used by Local Councils to assess rates and levies on the property owner and often has little relevance to the property's true market value. Actual sales values often differ wildly from the property's stated Capital Value, especially when the last rating assessment was conducted some time ago.

There are many reasons for this - The Capital Value is assessed often without a physical inspection of the property, is done periodically usually every three years, and changes are applied across the board based on the area's average change in value rather than a specific property's change in value.

Whilst the Capital Value has historically been used by home seekers as an indication, financial institutions will seek a Registered Valuation to establish the property's true market value, and will often lend more based on the Registered Valuation as it is a more accurate reflection of the property's true worth.

Q: I am building a new home, how can you value that?
A: We treat these as an "As If Complete" Valuation and can assess the expected market value of the property when completed to the provided designs and specifications.

When building a new home, a registered valuation will help with the managing of funding for the project by providing your lender with a market value for the property when complete as well as progress reports during the building process as and when draw downs on the finance is required to pay contractors.

Q: What is a Progress Valuation and a Valuers Completion Certificate?
A: When building a new home, progress payments are made during the build to various contractors. Depending on your lender, inspections may be required to confirm the value of work completed before loan funds are released. This is where a Progress Valuation is required where an inspection of the build is done by us to establish what value, based on the original valuation report, is in place. Note also we cannot include any purchases, such as appliances, bathroom equipment or tiling, that you may have already bought but not yet installed.

When the project is complete, the lender may ask for a Valuers Completion Certificate before the final payment is made. Again an inspection is made of the completed dwelling and any other features such as driveways and landscaping that was included in the original valuation report to verify to the lender that what was specified has been put in place, plus any variations that are noted do not have a negative impact on the original "As if Complete" valuation. We also complete a full measure of the dwelling to ensure it meets or exceeds the size stated on the original plans and valuation report.Important: Note that a Valuers Completion Certificate does not revalue a property based on the current market value, it only confirms the build is to the specifications as per the original valuation report.

Often during the build process, the market has moved or the plans may have changed. In this instance, a new market valuation may be more appropriate to reflect these changes in an updated report. Talk to us about your options if this is the case.

Q: I intend to do some renovations/extensions - can a valuation report assist me?
A: Absolutely! A common misconception is that cost equals value - namely the amount spent will be reflected in the same increase in the value of a property. Not always so, and we have often seen some properties over-capitalised - when the amount spent on the property exceeds the value the market is prepared to pay. This can be caused by a variety of circumstances that are not easily apparent to the homeowner. If you are considering major extensions or renovations, especially where you hope to gain financially from these, then it's best to seek qualified, experienced advice before committing to the project.

Q: What's involved with a property valuation?
A: Firstly a convenient time is arranged with the property owner or real estate agent for us to inspect the property. When we inspect the property, the exterior is measured to ascertain the building size, and a full external and internal inspection is conducted for our report, this includes all major components of the property which are itemised. Numerous property photos are also taken to be included in the report.

After the inspection, comparable sales of properties within the locality are viewed and a full analysis is completed. Taking the inspection information, comparable sales analysis and the Valuer's local knowledge, different techniques are applied to derive the subject property's market value.

Additional information is gathered for the report, such as legal and land information, risk analysis, locality and amenity information, and market data. The report is then reviewed, signed off and then emailled to the client and, if required, the relevant lender, in most cases within 24-48 hours of inspection. please note payment is required before a report is released.

Futher explanations of what is contained in our comprehensive valuation reports can be found on Our Valuations page.

All valuations can be booked online (click here), or through Property InDepth's centralised Customer Service Centre on:

0800 INDEPTH (0800 463 378) - toll free

Property InDepth
Winners of the Property Institute of New Zealand Innovation of the Year Award 2008