Property Revaluation FAQs

​​​Common questions and answers​

What is a rating value?
Who calculates your rating value?
How are rating valuations calculated?
When are rating values calculated?
What date is my valuation based on?
If you don't look inside my house, how do you know what it's worth?
My land value has increased, but my capital value has stayed the same?
In a buoyant housing market, why has my value not increased as much as other properties, or even decreased?
My improvement value is not what it would cost me to rebuild my house?
How will my new valuation impact my rates?
What is the difference between a rating value and a current market valuation?
How can my house have a rating value if it wasn't built at the time of the valuation?
What should I do if I disagree with the rating value on my property?

What is a rating value?

A rating value is assigned to every property in New Zealand.  It is made up of:
  1. The capital value: the likely price a property would sell for at 1 September 2015.
  2. The land value: the likely price that just the land (minus buildings) would sell for at the time of the valuation.
  3. The value of improvements: the difference between the Capital Value and the Land Value. It reflects the value which buildings and improvements add to the bare land.

Who calculates your rating value?

In Hamilton, Quotable Value (QV) is the valuation service provider contracted by Council to review and maintain property valuations. 

How are rating valuations calculated?

  • Rating values are calculated using a complex process called mass appraisal.
  • Valuers consider relevant property sales from your area around the time of the valuation. A market trend is established and applied to similar properties.
  • A number of individual properties are also assessed every year because of issued building consents, and other inspections. These individual assessments enhance the mass appraisal process.
  • The entire process is also independently audited by the office of the Valuer General. Strict quality standards must be met before your new rating value is confirmed.
The process to determine residential valuations is a follows:
  • The land value is firstly determined. Land is valued as if vacant, and on its highest and best use. Highest and best use means that if land has development potential, this will be factored into the value.
  • The capital value is then determined. This reflects the likely value the property would sell for as at 1 September 2015. The capital value does not include chattels.
  • The improvement value is the difference between the capital and land values.

Commercial, industrial and rural properties are determined by the market and other factors such rental returns. They do not include chattels, nor do they include GST.

When are rating values calculated?

Hamilton City Council undertakes a rating revaluation every three years, with new notices generally sent in November. As we have just gone through a revaluation, the next one will be in 2018.  

What date is my valuation based at?​

An important aspect of your rating value is the 'effective or base date.' This is the date at which your rating value should have reflected your property's market value. Your newest valuation is based as at 1 September 2015. As the rating value is only updated every three years, as time passes it may not reflect the current market value, until such time as it is updated again.

If you don't look inside my house, how do you know what it is worth?

Councils store details on every property in New Zealand, including yours. Properties with similar attributes such as land area, and age of building, condition and location are grouped together. A value trend (determined by relevant sales) will then be applied to the group in which your property sits. A significant number of internal and roadside inspections are undertaken prior to the revaluation. Quotable Value are local and are aware of the Hamilton market conditions. 

My land value has increased, but my capital value has stayed the same.

In your area the market shows that sales for vacant land are at higher levels than the last 2012 revaluation, but improved sales (house and land) have been at similar levels to that of the last revaluation. When establishing the valuation these components are reviewed individually based on sales and market evidence.

I​n a buoyant housing market, why has my value not increased as much as other properties, or even decreased?

The changes at a revaluation are based on the sales market evidence and the prices paid for properties within your local area. It also takes into account factors such as the type of property, location, development potential and available amenities etc. Demand of particular types of property fluctuates over time and sales evidence indicates that there may not have been the type of demand that other properties have seen. 

My improvement value is not what it would cost me to rebuild my house?

The improvement value is merely the difference between your capital (total) value and your land value. The capital value should reflect what you property would sell for based as at 1 September 2015 (excluding chattels). As the land must be valued on its highest and best use, this may be, in some cases, a higher component of your total value due, to potential such as size and zoning.

The improvement value is not always an accurate assessment of replacement cost of the dwellings.  

Refer to 'the process to determine residential valuations'

How will my new valuation impact my rates?

For more information on how a revaluation will impact on your rates, click here

What is the difference between a rating value and a current market valuation?

Your rating value is one factor used to determine your rates which are set by Council. Your rating value is updated every three years. Market valuations are different. You can request one at any time from a registered valuer. The registered valuer will thoroughly inspect the interior and exterior of your property. They will also use their local knowledge and analyse recent sales dates. All this information will be presented in a comprehensive report that will be current at the date you request it.

How can my house have a rating value if it wasn't built at the time of the valuation?

A house that has been newly built or renovated since the last valuation will receive an updated rating value that reflects what it would have been worth if it existed at on 1 September 2015. As these values are used as a basis for rating, all properties are valued as at 1 September 2015. This to ensure rates are allocated fairly.

What should I do if I disagree with the rating value on my property?

Refer to information on 'Objecting to your Rating Valuation'.
Page reviewed: 02 Dec 2016 3:12pm