Late last year Tauranga City Council released new rateable values to home owners. Rateable Value is calculated taking three things into consideration – the Capital Value (CV) based on comparable sales in your area, Land Value (LV) based on the sales of bare land in your area and the value of improvements (CV – LV). Rates are charged on the Rateable Value (RV – this used to be known as GV or Government Valuation).
The council are very clear that the revaluation process is not done to provide values for property owners - for marketing, sales or any other purposes. It is done primarily for rating purposes and the Council are required to do this by law. Market Value, the price you could expect for your property if you were to sell it today, is based on several different factors: supply and demand of your type of property in your location, interest rates and the economy in general. Obviously physical factors such as presentation, appeal etc. are also taken into consideration in working at market value.
Sellers and buyers often confuse the two! They are very separate and should be treated as such.
EVES. Exceptional. Every day.