What’s this property worth?
It’s a critical question, whether looking to buy, sell or manage your largest asset.
We created Homes.co.nz to help people become more informed about the massive decisions they need to make around property. Part of being informed involves understanding the source and limitations of the data we’re surfacing. So let’s dive into two key data points that we’re displaying to help you research “What’s my home worth?”.
What Is The Rating Valuation (RV)?
The local council creates the RV to determine how to spread the cost of running the town among homeowners. Put simply, the higher your RV, the higher your rates bill. They determine your RV every few years by taking the records they have about your property and comparing it to records they have about sales via a complex computer model called an AVM. Here are a couple of important points:
Nobody visited the home.
The value was based on the limited information the council had. The computer model doesn’t know about a broad range of factors that will influence a buyer; like the chattels, heating, landscaping, etc. Factors that the council likely used to calculate a propert RV are on a Homes.co.nz page like this one. You’ll spot all sorts of gaps and maybe even errors in this data; this is the reality of the historic records kept about homes currently.
A market moves lots and RVs don’t
The registered valuation usually gets set every three years, so what the computer model (AVM) fired out when it was last set could wildly differ from what somebody is willing to pay today.
What’s The Homes Estimate
The Homes Estimate is similar to the Rating Valuation in that it uses a computer model to determine value based on local sales, council data and a few other variables. Americans have used their largest property website Zillow.com’s computer generated estimate (Zestimate) to determine “what’s my home worth?” for years now. Like Zillow and the RV we have limited information about a home’s finer details. We’ve worked hard to gain direct access to a broad range of public data that was historically tied up to ensure these estimates are as accuarate as possible, and we’re committed to adding new data over time.
Homes Estimates Are Updated Monthly
One of the key benefits of a Homes Estimate is that it updates every month based on the sales in your area. As a homeowner if you claim your home you’ll see if your property is growing in value or reducing as new data enters into our model.
The Homes Estimate Is Impartial
While the Homes Estimate can be a frustrating number, it’s an impartial data point that exists to add insight for your own decision making. Our computer doesn’t need a coffee to wake up, has no vested interest, and is fairly boring on the whole emotional front.
We recommend using the Homes Estimate as a starting point for further discussion with a local expert valuer or real estate agent. Unlike our computer, they live and breath the market in your area, and can give a deeper understanding of value.