Property

REINZ rejects call to eliminate CVs

Property commentator Alistair Helm has called for an end to CVs on residential property.

Tuesday, May 28th 2013

He said buyers and sellers tended to think of it as the “official” valuation of a property, when it was not a reliable guide.

“You look overseas and find that in most every other country there is no such number for an individual property. You will get the local council rates assessment, the local government tax, the capital value of the land or the rentable estimation for the property, but never an estimation of valuation.”

Helm said CVs were unreliable as they were usually computer-generated, assessed infrequently and had no bearing on market value.

“Having a CV for a property becomes a crutch for the real estate industry that does nothing to add value to their services. Imagine for a minute if there was no CV. A real estate agent would use skill and local knowledge to assess recent sales, ensuring that local knowledge could ensure that truly comparable properties were evaluated in order to come up with an intelligent estimation of the true market price.”

Removing CVs might encourage more properties to be listed with a price indication, he said.

But Real Estate Institute chief executive Helen O’Sullivan said while CVs could not be considered a foolproof guide to a property’s value, they would at least give a buyer a general idea.

“If people are looking at a property online, they can see whether the CV is $1 million or $500,000 and that will give them a sense of what sort of ballpark figure they are looking at.”

She said CVs should be treated as just one tool of many for buyers to work out a property’s value.

Comments

On Tuesday, May 28th 2013 4:35 pm Jeremy said:

I'm glad they wont be taking it away. Its obvious the CV plays no part in establishing the market value of a property however its definitely a good guide for purchasers. It comes in handy for me especially when you see a house that is listed as being 50 - 60% over CV whilst a recent sale for a house on the same street went for 20 - 30% over CV. I would approach the house with some caution as its most likely a speculator trying to do a quick flick. I would hate to have to rely on a real estate agent's local knowledge to assess a sale price. It gives them far too much leverage.

On Wednesday, May 29th 2013 11:50 am Alistair Helm said:

My objective in writing the article was to bring to attention how misleading they are and how the real estate industry should not rely on them (accurate or not) as an excuse not to provide a fair and informed professional view of what is the current market value of a house. Agents are not valuers but they present themselves as knowledgeable about the market so they should stand up and demonstrate this rather than hiding behind CV's - they are paid well enough to justify such expectation of skills.

Most Read

SBS FirstHome Combo 4.29
Unity First Home Buyer special 4.29
Co-operative Bank - First Home Special 4.85
China Construction Bank 4.85
TSB Special 4.89
ASB Bank 4.89
Kiwibank Special 4.89
Westpac Special 4.89
Kainga Ora 4.89
BNZ - Std 4.89
AIA - Go Home Loans 4.89
Nelson Building Society 4.93
Westpac Special 4.95
BNZ - Std 4.95
China Construction Bank 4.95
Wairarapa Building Society 4.95
Kiwibank Special 4.95
AIA - Go Home Loans 4.95
TSB Special 4.95
ANZ Special 4.95
ASB Bank 4.95
SBS Bank Special 4.95
SBS Bank Special 5.39
Westpac Special 5.39
Co-operative Bank - Owner Occ 5.59
ASB Bank 5.59
BNZ - Std 5.59
BNZ - Classic 5.59
AIA - Go Home Loans 5.59
Kainga Ora 5.69
Kiwibank Special 5.79
ANZ 5.79
TSB Special 5.89
SBS Construction lending for FHB 3.94
AIA - Back My Build 4.44
CFML 321 Loans 4.99
Co-operative Bank - Owner Occ 5.95
Co-operative Bank - Standard 5.95
Heartland Bank - Online 5.99
Pepper Money Prime 6.29
Kiwibank - Offset 6.35
Kiwibank 6.35
TSB Special 6.39
China Construction Bank Special 6.44

More Stories

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

Friday, January 31st 2025

[TMM Podcast] Yelsa serves up “marine reserve” of property buyers

It’s been years in the making and former real estate agent Mike Harvey is now coming to market with his platform matching buyers and sellers, an offering he says will be a gamechanger for the industry.

Leaving last year's stumbling housing market behind

Friday, January 17th 2025

Leaving last year's stumbling housing market behind

As interest rates ease and job losses climb, New Zealand’s housing market faces a mixed year of modest growth, with conflicting forces shaping the outlook for homebuyers and investors.

Don’t bet on house prices rising faster than incomes

Wednesday, January 15th 2025

Don’t bet on house prices rising faster than incomes

Former Reserve Bank Governor and National Party leader Don Brash says there are grounds for believing that house prices may finally have ended the three-decade period when they rose significantly faster than incomes.