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?
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?

Every property in New Zealand will have a rating valuation. Council's must update all rating valuations at a minimum of every three years, for the purposes of setting rates.
 
A rating value comprises three components:
  1. The capital value: The total value of your property including land and buildings. This is an estimate of what your property may have sold for on 1 September 2018 (excluding chattels).
  2. The land value: The value of just the land as if it had no buildings on it. This is based on its highest and best use. The land value includes any development work which may have been carried out such, as drainage or retaining.
  3. The value of improvements: The difference between the capital value and the land value. Although it reflects value added by any structures to the land, it does not represent a replacement cost of any buildings.

Who calculates your rating value?

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

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 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 2018. The capital value does not include chattels.
  • The improvement value is the difference between the capital and land values.

Commercial and industrial 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 for the 2018 revaluation sent to property owners, and available online from 21 November 2018. The previous revaluation was in 2015.  

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. The base date of the 2018 valuation is 1 September 2018. 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 hold 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 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.

This means in your area the market shows that sales for vacant land are at higher levels than the last 2015 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?

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 value of improvements is simply the difference between your capital (total) value and your land value. The value of improvements does not represent a replacement cost of any buildings. 

Refer above to 'the process to determine residential valuations'.

In a growth area such as Hamilton, the demand for land has meant that in general, land values have increased at a higher percentage than the capital values. As a result, for most properties, the value of improvements makes up a lesser proportion of the total capital value.

Where land has development potential, the highest and best use may mean the land is the most valuable component of the total property.

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 revaluation will receive an updated rating value that reflects what it would have been worth if it existed at on 1 September 2018. As these values are used as a basis for rating, all properties are valued as at 1 September 2018​. This to ensure uniformity in valuations and that rates are allocated fairly.

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

You have until 16 January 2019 to object to your valuation if you think it is incorrect. Click here for more information on lodging an objection, and access to our online objection portal.
Page reviewed: 21 Nov 2018 12:01pm