Valuations - Frequently Asked Questions
What is a "Valuation Service Provider (VSP)"?
All councils are required to appoint an approved valuation firm (known as a "Valuation Service Provider") to conduct the triennial (3-yearly) general revaluation of their City/District, plus to maintain the values where sub-divisions, amalgamations, building consents etc have changed properties. Rotorua Lakes Council's current Valuation Service Provider is Landmass Technology Limited of Tauranga.
How often are valuations issued?
Every property is required to be revalued for rating purposes at least once every three years in accordance with the Rating Valuations Act 1998. Valuation notices are also issued between revaluations when changes are made to properties.
- Subdivision of land
- Changing land use
- Amalgamation of more than one piece of land
- Changing land use
- Erecting new buildings
- Adding/altering/demolishing existing buildings
- Changes in Resource Management Plans
Is the Rating Valuation lower than the market value?
While rating valuations are based on market sales, they are a snapshot of the property market at a single point in time (e.g. current revaluation date 1 September 2020). As real estate prices generally fluctuate over time, a rating valuation should only be used as a starting point to determine what the market value of a property might be.
It needs to be understood that a sale price usually includes chattels, whereas rating valuations do not. The value of chattels can vary considerably between adjacent properties, as it usually includes items such as carpets, curtains, heat pump, oven, dishwasher and light fittings, and may even include other items sold with the property such as furniture, pool tables etc.
Why do properties get revalued?
Current rating legislation requires all Councils to use rating valuations (either land value, capital value or annual value) to collect at least part of any general rates set by the council.
How are Rating Valuations assessed?
When the value of your property was assessed, the valuers considered a number of factors including:
- What properties are selling for in your neighbourhoods around the date of the revaluation
- The demand to buy or rent property in your neighbourhood
- The type of property, ie: house, townhouse, factory or shop
- Any known changes to the property since it was last valued. This is shown on the revaluation notice as Land Value, Value of Improvements, and Capital Value. The values are then subject to an audit process by the Office of the Valuer General prior to rating valuation notices being sent out to all property owners.
How does a Full Current Market Valuation differ from a Council Rating Value?
A Current Market Valuation provides you with the professional estimation of the registered valuer you have employed of how much, in their opinion, your property is worth in today's property market.
A Council Rating Valuation is undertaken by Council's Valuation Service Provider to establish property values at a specific point in time to enable council rates to be assessed, and excludes the value of chattels. Council currently arranges for revaluations to be conducted every three years, and hence a rating value is only an accurate measure of a property's relative value at the date of the current revaluation, which is currently 1 September 2020.
Who decides the new valuation for a property?
Every council is required to appoint a valuation service provider (VSP) to review and maintain its district valuation roll. Rotorua Lakes Council has contracted Opteon as its VSP
Where can I view the current values?
These can be inspected on the Rotorua Lakes Council Rating Information Database (RID)
Do Rating Valuations include GST?
Rating Valuations do include GST, if any, for residential property. However in most residential transactions the parties are not registered for GST. For all other property types GST is excluded.
What does 'Capital Value' mean?
This is the assessed probable price that would be paid for the property as at the date of the latest general revaluation. It does not include chattels, stock, crops, machinery or trees. Residential values include GST, other property types do not.
What is 'Land Value'?
This is the probable price that would be paid for the bare land as at the date of valuation. The Land Value includes any development work which may have been carried out, such as draining, excavation, filling, retaining walls, reclamation, grading, leveling, clearing of vegetation, fertility buildup, or protection from erosion or flooding.
What does 'Value of Improvements' mean?
This is the difference between the capital value and the land value. It reflects the value of the property's buildings and other structures.
Who can I talk to about my rating valuation?
Ratepayers can phone 07 348 4199 to speak with a Customer Advisor.
How can you value my property without thoroughly inspecting it?
It is not feasible to undertake an inspection of every property in the district and for rating valuation purposes it is not necessary. At the time a dwelling or building is constructed a valuer will make an onsite inspection and make file notes for use in future valuations.
Every building consent is sent to the valuer, although generally only work valued at more than $10,000 will be inspected.
Where there are significant variations between actual market sales data and expected rating valuations values, inspections are also made.
How does Council know when changes have been made to my property?
Council has copies of all survey plans and building consents. If changes are made to a property which are likely to affect its value, but which are not covered by either of the above approval processes, Council should be notified so that their records can be updated, and the property's value amended if necessary. If the values are changed a new valuation notice is issued.
Can the Valuer just walk onto my property without my permission or an appointment to value my property?
Yes - under the Rating Valuations Act 1998 (No. 69) ("the Act") a valuer may enter the property without permission from the owner. The Act also states the Valuer must produce written evidence of authorisation to enter. e.g. Identification must contain a reference to section 45 of the Act, the name of the authorised person and a statement of the powers conferred by subsection (1) on the authorised person. Rating Valuations Act 1988
We've built a new house (or we've altered our house) (or we've added a garage) but you haven't valued it?
Council forwards copies of all building consents through to the valuers at Opteon. While every effort has been made to get as many new buildings and alterations on the roll prior to a revaluation, it is not possible to get them all on.
Once the cut-off point for the general revaluation is reached, new building and alterations that were not included will be issued separately as soon as possible, and the date for seeking clarification or lodging an objection to that valuation will relate to the date of issue, not to the closing date for the general revaluation.