GETTING Property valuation before buying

[aka_G]

hi all investors,

im wondering what is the best way to have a good valuation quickly and cheaply for a property that you wanna buy . i dont wanna pay 400 bucks each time for the valuers even i buys the property or not but i dont have any valuation experience. i knows about QV or RevIQ but are they reliable???

Thanks for your recommendations!

Cheers

Jacky

[Volatile]

I would say,

1- know the area so that you know approximately what the house is worth.

2- ask the sales agent for a list of all recent sales in the area. Look for similar land and floor area, go for a drive and check these places out in comparision to yours.

3- find out approximately what the house will rent for through agents, or http://www.dbh.govt.nz/. Get friendly with a valuer and they will provide you with a CAP RATE which you can use to value the property based on potential rental income.

[JohnL]

Definitely know your area. QV's E-Valuer can be OK but depends on the area. I find the local sales report on QV gives you a better indication (plus the drive past). The condition of the houses are the one variable that computer programs don't know and this effects the prices by several tens of thousands!!!

Plus your favourite agent's opinion.

John

[Monkeyboy]

If you purchase through a land agent you shouldn't need to get a valuation done. Most lenders accept a sale and purchase agreement as the accepted value. You can also put an offer in subject to valuation being acceptable to you and if it comes out better then you are on to a winner. If it doesn't you can say the value is unacceptable. So it is a matter of knowing the area and houses so you can purchase confidently under value

[SuperDad]

aka_G,

You can use the following site, which has information on previous sales:

http://nz.helpsellmyproperty.net/

Like the others, I would say to get to know the area you are looking in. This will be more accurate than QV, which I think throws out comparable sales on a "proximity" basis. In other words, I think they base it on distance from the house you are looking at.

I did a QV search once for a property in the Hillcrest suburb of Hamilton, and I got a couple of sales from Melville. Sure, Melville is within 1.5km as the crow flies, but it is on the other side of the river. (I hesitate to say the "wrong" side of the river.)

Paul.

[MJU]

Right now the best way to get a valuation pre purchase is www.qv.co.nz/freereport

One per email for another week I think, retail value $70.

[captaincrab]

If you are new to the area you are investing in, then $400-500 is a cheap way of getting some research done. Valuers have to list recent sales and these may be a useful start for you. It does amaze me that people who are about to invest hundreds of thousands of dollars get all cheap about this sort of thing. Its a false economy.

[Glen]

Money well spent

Too right! I have a valuer who does me a deal now on 4/5/6 properties at a time for around $1000 all up. Updates and new.
Money well spent when using this in any negotiating that makes that back many times over in equity.
Haven't used www.qv.co.nz/freereport yet , but will do to compare them against a valuer in the area.

[BarryWilliams]

There's also the REINZ site. I know they come in for some stick but nonetheless I find the information relevant and helpful in making decisions. It may not help you drill right down into some suburbs, but is still good value.

http://www.reinz.org.nz/reportingapp/?RFOPTION=Report&RFCODE=R100

Cheers
Barry

[aka_G]

thank you all,

these info are really useful for me. i will apply to suit my case.

cheers

Jacky

[aka_G]

hi all,

i have 2 questions:


1, on QV:

im wondering whether the CAPITAL VALUE is the Orgirinal Value when the property first built or the Current Estimate of Market Value????

2, on Trademe:

what is the Rateable Value???

Can someone explain these things for me please!?

thanks a lot

Jacky

[Emblaze Pete]

Capital value (CV) & Rateable value are the same thing. Local councils use CV for calculating your rates.These valuations are pretty meaningless when trying to ascertain current property values

[Heg]

hi all,

i have 2 questions:


1, on QV:

im wondering whether the CAPITAL VALUE is the Orgirinal Value when the property first built or the Current Estimate of Market Value????

There should be a date next to the CV. This is when the last update was done. So it is a 'stab in the dark drive by valuation' of the property done on the date shown. Usually updated every 2-3 years. I use them as a very vague guideline only as some are wildly innacurate.

[John Hutchinson]

Hi Jacky

Just saw your post, so this may be a little late.

I use RevIq. It draws it's info frm QV and Dbh and also demographics for the area in 1 report. It also gives comparable sales and u can get current properties that are advertised in the market as well.

I have used other free sites to get info and while they can be helpful it takes a while to gather all the info.

And can someone tell me how u put a previous quote in a reply (simple instructions plse!) - thanks

[Josko]

And can someone tell me how u put a previous quote in a reply (simple instructions plse!) - thanks

Click on "Quote" button of the post you wish to quote at the bottom right hand corner of the post.