Latest Practicable Valuation (LPV)

The Latest Practicable Valuation (LPV) — also referred to as the council valuation, rating valuation, or RV — is the most recent assessment of a property's value carried out by the local council (or their appointed valuer). Councils are required to revalue all properties in their district at least every three years.

The LPV includes three components: capital value (the total value of land plus improvements), land value (the value of the land alone), and improvement value (the value of buildings and other improvements). These figures are used primarily to calculate council rates.

It's important to understand that the LPV is a mass-appraisal valuation, not an individual assessment. It's based on sales data and property characteristics, and it may not reflect the true market value of a specific property. Properties can sell for significantly more or less than their LPV depending on market conditions, property condition, and other factors.

While the LPV provides a useful reference point, don't rely on it as an accurate measure of market value. It can be a helpful starting point for understanding what a property might be worth, but it's no substitute for a professional market valuation or comparative market analysis from a real estate agent.

The LPV is most useful for comparing properties in the same area (are you paying a premium relative to other properties?) and for estimating council rates. If the asking price is significantly above the LPV, understand why — it may reflect genuine market growth or it may warrant further investigation.

The LPV is available from your local council's website, usually by searching the property address. It's also shown on the LIM report. QV (Quotable Value) maintains a national database at qv.co.nz where you can look up most property valuations. Your real estate agent should also be able to provide the current LPV.