Registered Valuation vs Council Valuation (RV)
A registered valuation is a current, independent assessment of market value by a qualified valuer. A council valuation (rateable value or RV) is a mass-appraisal figure set by the council for rating purposes โ it is not an estimate of what a property would sell for today.
Side-by-Side Comparison
| Attribute | Registered Valuation | Council Valuation (RV) |
|---|---|---|
| Source | Registered valuer (NZIV-registered) | Local council via Quotable Value (QV) or council valuer |
| Cost | $600-$1,200+ depending on property type | Free โ publicly available |
| Turnaround | 3-10 working days (includes site visit) | Already available โ updated every 3 years |
| Content focus | Current market value based on individual property inspection and comparable sales | Rateable value for council rating purposes โ capital value, land value, improvement value |
| Accuracy for market value | High โ reflects current market conditions and specific property features | Low โ often lags market by 1-3 years, does not account for individual condition |
| Accepted by banks | Yes โ required for most mortgage applications | No โ banks do not use council RV for lending decisions |
| Site visit included | Yes โ valuer physically inspects the property | No โ mass appraisal using data models and limited inspections |
| Legal standing | Formal valuation report with professional liability | Council rating assessment โ not intended as a market value estimate |
Registered Valuation Explained
A registered valuation is a formal assessment of a property's market value prepared by a valuer registered with the Valuers Registration Board of New Zealand. The valuer physically inspects the property, analyses comparable recent sales, considers the property's condition, location, and features, and produces a detailed written report with a professional opinion of market value.
Registered valuations are required for most bank mortgage applications, relationship property settlements, estate matters, and insurance disputes. The valuer carries professional liability for their opinion, meaning there is accountability if the valuation is negligent.
The key advantage is currency and specificity. A registered valuation reflects what the property is likely worth right now, based on its actual condition and the current market โ not a generalised estimate from years ago.
Council Valuation (RV) Explained
The council valuation (often called the rateable value, RV, or CV for capital value) is a mass-appraisal figure assigned to every property by the local council, primarily to calculate rates. Councils are required to revalue all properties in their district every three years, using statistical models and sales data rather than individual property inspections.
The council valuation is broken into three components: capital value (land plus improvements), land value, and improvement value. While useful as a rough reference point, the RV is not designed to be an accurate estimate of what a property would sell for today. Market conditions can shift significantly between revaluation cycles, and the mass-appraisal process cannot account for individual property condition, renovations, or unique features.
Real estate agents and buyers commonly reference the RV, but it should be treated as a general indicator rather than a price guide. Properties regularly sell above or below their council valuation.
Do You Need Both?
Not necessarily, but they serve different purposes. The council valuation is freely available and provides a rough baseline. If you need an accurate market value for a bank application, legal matter, or confident purchase decision, you need a registered valuation. For casual property browsing, the council RV is a free starting point โ just do not treat it as gospel.
Which Should You Get First?
Check the council valuation first โ it is free and instant. Use it as a rough reference point when evaluating asking prices. If you are serious about purchasing and need to secure a mortgage, arrange a registered valuation early in your due diligence period. Banks typically order their own valuation, but you can also commission one independently for your own confidence.
Frequently Asked Questions
Why does the council valuation differ from the sale price?
Council valuations are mass-appraisal figures updated every three years. They cannot account for market movements between revaluations, individual property improvements, or unique buyer demand. It is common for properties to sell 10-30% above or below their council valuation.
Can I challenge my council valuation?
Yes. If you believe your rateable value is incorrect, you can lodge an objection with the council within the specified objection period after a revaluation. You will need to provide evidence, such as comparable sales data, to support your case.
Do I need a registered valuation to get a mortgage?
In most cases, yes. Banks require a current registered valuation to confirm the property's market value before approving a mortgage. The bank may arrange this directly through their panel of valuers, or you may be asked to provide one.
Related Terms
Rates
GlossaryAnnual property taxes charged by your local council to fund public services, infrastructure, and local government operations.
LIM Report
GlossaryA Land Information Memorandum โ an official council report summarising everything the council knows about a property.
LIM Report vs Title Search
CompareA LIM report tells you what the council knows about a property. A title search shows who owns it and what legal interests are registered against it. You need both.
LIM Report vs Building Report
CompareA LIM tells you what the council knows on paper. A building report tells you the physical condition of the property. They cover completely different things โ get both.
Building Report vs Building Consent Search
CompareA building report is a physical inspection of the property by a qualified inspector. A building consent search is a paper-based check of what building consents the council has on file. One tells you the condition; the other tells you the compliance history.
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