How to identify your apartment's market value
Identifying your apartments worth through understanding what CV’s, GV’s and RV’s are.
CV stands for capital value and is done by Quotable Value New Zealand and work on behalf of the Council, these are done on properties every 3 years and are not a true reflection of your apartments worth or are relevant.
GV stands for government valuation, this is confusing as this was the old term for CV and is now no longer used.
The last term is ‘RV’ and this is the most accurate form as identifying your apartment’s true worth and stands for a registered valuation.
A registered valuer will come out and view the property to deem your apartments true worth.
Good day. Andrew Murray from The Apartment Specialists. Today we're talking about CV's, GV's and RV's. Very confusing. What are they? What do they mean and are they relevant?
First of all, we'll start with a CV. It stands for capital value. That's done by Quotable Value New Zealand on behalf of the council in local territories, to give you a valuation on the property. That's a judge for rates and things like that. Now, they are approximately done every three years and they have no real reflection, in my opinion, on market value. They can, but do not rely on them. I see real estate agents all the time going, "I've got a price above CV!" Well, it's absolutely irrelevant because they're wrong, especially at the moment. The last ones were done in 2011 so it's nothing to write home about.
The next one is the reason why is, there's so much confusion around this area, is the CV's usually called a GV. This is a government valuation. That's extinct. It no longer exists. It's now just called the CV. But then even more confusing is the CV used to be the GV or the RV, which means rateable valuation, which is non-existent. So capital value is CV and that represents basically what the council puts forward and it's done by Quotable Value New Zealand on behalf of the authorities.
So the next lot is an RV. Now, an RV is a registered valuation. That is the actual market value. That's when you get a registered valuer to come out and see the property or the apartment and see how much it's worth. You generally use them either to refinance for the banks, things like that, because the... what is it worth right now? Generally, it's backwards in my opinion. They're generally not always right but that's what their job is. A registered valuation is the market value.
So to conclude, GV - gone. Doesn't exist anymore. It is the old term for CV, which is capital value, which is done by Quotable Value New Zealand on behalf of the government, basically, or the council. Then there's RV which is registered valuation, which is the market value. So don't rely on the CV. Rely on the registered valuation.
Hope that helps. Cheers!