$50,000 made in a day
For those in the Wellington City Council region you will now have received your latest council rating valuation (RV’s). These are always eagerly anticipated with home owners scrambling to view what gains have been accrued over the previous three year period. It is also not uncommon to hear those now almost clichéd water cooler conversations of large fortunes being made, seemingly overnight, albeit only on paper. From my perspective, rating valuations do serve a purpose in some instances but as a registered valuer I have never been a big fan and here is why.In the last two weeks I have sold three properties post the publication of the new rating valuations. The first two sold for $ 136,000 and $77,000 above their new RV’s and the third sold $189,000 below it. All three sales were a reflection of the market at that time supported by recent market activity which was provided to both the vendors and purchasers over the course of the campaign. Wouldn’t you think that recently up-dated RV’s would be more reflective of the current market?If an agent chooses to use the RV when advertising a property for sale, it will normally be slightly lower than the expected sale price and used as a hook to generate interest. Most purchasers who have been active in any given market will have developed a good feel for current market property prices as they will have been viewing similar properties within any given price range. If you are new to the market, one of the best questions to ask an agent regarding price is ‘can you provide me with the comparable sales used to appraise this property’. As mentioned, this is something we provide all of our potential purchasers as it helps them engage in the process and reduce the frustration of unpriced marketing methods such as deadline, tender or auction. It is in our experience that potential purchasers that choose to use the RV as a guide over relevant sales are more likely than not to be unsuccessful.
The Wellington Market
The last three months has been a sellers’ market in Wellington with buyers having to compete in multiple offer situations for most properties. We have certainly been experiencing some outstanding results which has been so wonderful for our vendors as the market has seen little movement in the past nine years. We see this trend continuing into the New Year.
Property quick facts
Average sale price
|October 2013||October 2012|
Average days on the market: 24.1