John Fisher of First National Wanaka

For many people the biggest asset they will ever own is their home and keeping abreast of its value is becoming more and more important.

A property appraisal or current market analysis (CMA) is a service offered by most real estate agents, and while it’s not a valuation it is a guide to help you check values. Regular appraisals are most important in a rapidly rising market as things change quickly. Check out these four reasons why you should have your property appraised.

1. Rateable Value: Being able to use the CMA to make sense of the Council Rateable Value (RV) of your property and if necessary, challenging the RV within the time frame allowed – your agent may be able to help you with this process. It is important to understand that the new RV may be out of sync with the market just days after it is published.
2. Asset Value: Using the CMA to understand the value of your asset is important for financial planning and planning your future, percentage return can affect your borrowing capacity, and impact on retirement decision-making.
3. Insurance: Whilst the CMA gives information on the market value, most consultants will be able to assist with the process on how to go about getting advice from a registered valuer as to your current insurance and the benefit or not of replacement insurance. A lot of homes in New Zealand are not insured for replacement value and are underinsured.
4. No Cost: Appraisals by real estate agents are free with no obligation. A market appraisal prepared with integrity, data, and quality information is what you should expect.

Wanaka Real Estate agent John Fisher says completing property appraisals is part of being in the industry "It’s always good to be able to help people gain an understanding of what their property may be worth”, says John. "People should not hesitate to seek an appraisal from a real estate agent, we know and understand the market and it’s a free service.”

John says simply relying on the Council Rateable Value (RV) also known as Capital value (CV) is not a reliable measure. "The Council uses statistics to set the rateable value, they don’t visit every house or section, your RV is based on comparisons - in a rapidly growing market it can be out of date very quickly. Further if you believe that the RV is not accurate today or perhaps was miscalculated in a previous period, say 3, 6, or even 9 years ago then, it may be wildly inaccurate now and should be challenged. Councils recognise this and allow a specific time period from publishing date for notification of a challenge

John also said, ”Getting a CMA from a real estate agent is not a substitute for a formal registered valuation but it will give an idea as to market value and that in turn may lead you to examining your future requirements and the fit of the existing property - and you just never know, that may turn out to be a very good idea,”