I read a great article this morning in the Stuff Business section regarding house values, GV’s and Registered Valuations. I was tempted to copy and paste the whole article here but have resisted in doing so.
If you are contemplating selling your home or are currently looking to buy, have a read of these posts:
> http://www.stuff.co.nz/business/money/5787110/Whats-your-house-really-worth
>http://northernsuburbs.co.nz/2010/03/does-qv-represent-market-value/
A good definition of market value:
Market Value is the most probable amount that a willing and informed buyer will pay and a willing and informed seller will accept for a property in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.
Of course, there are a lot of ifs and buts and conditions buried in this definition. There are always extra factors at play in the sale and purchase of property. Just how informed do you have to be ? What if one partner is willing to sell but the other is not (eg. in a marital)?
When it comes to placing a value on your property, it will always be an informed guess whether you use a registered valuer or a real estate professional experienced in your market place. It is important to remember this. True market value is determined only once the property changes hands in the market place. The rest is an opinion…..
