New RV’s accurate?
The new Rating Valuations (2011) are out for residential property in Gisborne. They are back dated 1 July 2011. Despite the clear disclaimers from the Council and Land Mass Technologies that Rating Valuations are not accurate market valuations, we still tend to reference our property against its RV. However upon closer inspection, it is clear that we should not rely on this data to help us determine what our property is worth.
So how close to recent sale prices are the RV’s ? Only 32% of the 4th Quarter 2011 sales in Gisborne were within 5% of their 2011 RV’s. That means that in 2 out of 3 cases the RV’s are way off the mark.
It is important to remember that market value is determined by what buyers will pay. While sellers expectations are relevant, they are not necessarily an accurate opinion of true market value.
When you are selling, you only have two options, either to:
1) met the market and sell or
2) hold and wait until prices improve.
In this current environment that may prove to be a while away.
