How does the valuation process work?

Once you contact Hills Haden Limited, you will be assigned a valuer who specialises in the type of valuation you require.

You will be asked some questions and an appointment will be made to inspect the property.

What is a registered property valuer?

A registered valuer is a professional person who has completed the following:

  • A three year degree in business, majoring in valuation and property management.
  • At least three years practical work experience.
  • Applied for and been granted an annual practising licence by the Valuers’ Registration Board. This is a rigourous and stringent process which includes, among other things, an oral examination and the requirement to submit examples of valuation reports carried out for examination.

Once registered, the valuer must undergo at least 20 hours each year of continuing professional development.

What does a property valuer do?

A property valuer advises on residential, commercial and rural real estate. They inspect properties, check planning regulations to see if changes to property are allowed, research sales of properties, write reports and examine current property prices. A property valuer makes judgments about the value of properties to enable others to make informed decisions about lending, investments and pricing amongst other things.

A significant proportion of a valuer's time is spent writing reports. A valuer's competence is largely judged on the quality and thoroughness of a report.

What is a valuation?

A valuation is a professional assessment of how much your property is worth. A valuer inspects your property, considers all the factors that affect the value and compiles a valuation report.

Valuations are made for many different purposes, such as rating and taxing, finance, financial reporting, investment, insurance, rental, sale and purchase.

What is market value?

The price a willing buyer would pay and a willing seller would accept, both being fully informed and the property being exposed for sale for a reasonable time period.

What is the difference between a current market valuation and rating (sometimes referred to as Government) valuation?

A current market valuation is carried out by an independent, fully qualified and registered valuer. It provides a professional estimation of how much your property is worth in today’s property market.

Rating valuations are contracted to independent valuation companies by local councils to establish property values at a specific point in time to enable council rates to be assessed. Most councils in New Zealand reassess property values every three years, and hence a rating value is only an indexed guide to a property’s value at the date of the last revaluation. A rating valuation includes a capital value for a property and is made up of the land value and the value of Improvements.

A current market valuation has no influence on your council rates.

How can a fully qualified registered valuer help me?

Whether you’ re buying your first home or negotiating a large commercial property deal, you need a specialist – a valuer who knows property and knows your region. Most importantly, that valuer must take the time to understand your particular needs.

Registered valuations are carried out by professional, fully qualified and experienced valuers who have met rigorous tests of education and training and who are required to follow a professional code of practice.

The following are just some of the benefits of seeking the advice of a registered valuer:

  • A registered valuer does not sell real estate or act as a property sales agent, which ensures you receive an independent, unbiased property valuation.
  • A registered valuer can help give you peace-of-mind, avoid legal pitfalls and save time and money when buying or selling property
  • A registered valuer will be aware of current and future developments such as airports, shopping malls, lifestyle blocks, roading or motorway changes etc.
  • A registered valuer carries out market research and analysis so they have an understanding of property trends and conditions in your area.
  • A registered valuer will have knowledge of a property’s subdivision potential.
  • A registered valuer checks the title of the property to highlight any issues that you should be aware of for example a property you are considering may have an easement (right of way) that crosses two properties which might mean a neighbour could ask you to share the cost of a new driveway or fence.
  • A registered valuer can tell you about the zoning for the property to help reduce the risk of surprises after you buy the property such as having a light commercial or industrial business springing up next door.
  • Financial institutions usually require a registered valuation when you apply for a mortgage.
  • You will receive a comprehensive valuation report on your property.
  • Valuers provide analysis of current and potential rental income. This can be part of a commercial property valuation or as a separate service.
  • A registered valuer can help identify suitable properties or sites that suit your requirements.
  • An accurate property valuation allows you to make the right investment decision - whether to hold, sell or reposition and ensures you purchase or sell at the right price.

What does a valuer not do?

  • A valuer does not provide legal advice. You must employ the services of a solicitor for this.
  • Valuers do not provide a building or engineering inspections.

Why should I get a registered valuation if I am intending to sell a property?

A registered valuation is an independent assessment of value by a valuer experienced in your market.

What is a pre-purchase valuation?

A pre-purchase valuation will help ensure you do not pay too much for a property you would like to buy. It is a small cost in the purchase process that may save you money or highlight information previously unknown to you. You may find out something that turns you off a property or something that you are willing to pay more for.

Q. How can a valuation help me when I am refinancing?

Generally mortgage interest rates on residential properties are well beneath commercial or unsecured lending so therefore apportioning more lending to your residential home should reduce your interest repayment commitments.

Why do I need a valuation if I am involved in a divorce settlement or family court process?

In order to ensure a fair and equitable value has been reached by an independent person, reducing the likelihood of having the issue contested in the future.

What is a commercial compulsory acquisition valuation?

When acting under instruction from a client our fee is fully reimbursed by the acquiring authority.

A wider range of factors must be considered in commercial acquisitions due to the potential impact on existing business/es.

When property is compulsorily acquired the price offered is largely determined by a property's market value as determined by a registered valuer working for the relevant department. The market value of the property is added to the various amounts of compensation payable under the various Heads of Compensation.

A valuer is not entitled to act as an advocate. They must be objective and independent.

Hills Haden