CV’s Useless For Assessing Valuations

Modest two bedroom Auckland unit sells for $797K, 77 per cent above its valuation.


Property market advisor Olly Newland said the sale showed just how out of date CVs had become in Auckland’s booming market.

“CV values are now totally artificial. When they were released last year they were based on 2013 values, so they are already two years out of date.

“CVs are now useless 99 per cent of the time. An educated guess would be that they are 20 to 25 per cent below market rate in most cases,” Newland said.

The 1960s brick and tile unit had undergone renovations since its CV and Newland said this was one reason for the high sale price.

“They say for every dollar you spend on renovations you make five dollars back.”

More than 25 registered bidders were at the auction for this Mt Albert unit, which sold for a price 77 per cent over its CV.

A modest two-bedroom unit in the Auckland suburb of Mt Albert has sold for 77 per cent above its current valuation, as the city’s red-hot housing market shows no signs of cooling.

The Preston Ave property sold for $797,000, way over its $450,000 CV, in an auction held on the same day the Reserve Bank announced it would force residential property investors in the Auckland Council area to have a deposit of at least 30 per cent.

It was described tenuously as the “The Bachelor” of units by Barfoot and Thompson real estate agents Matthew O’Rourke and Ryan Harding, who added: “Tall, dark, handsome, funny, eats well, a total charmer anyone would be proud to bring home to mum! Well folks… Don’t despair, we present to you – ‘The Bachelor’ of units!”

And the “charmer” attracted a crowd of more than

20 registered bidders and five phone bidders to the auction on Wednesday.

O’Rourke and Harding said on their Facebook page they had more than 100 groups through four open homes at the property in two weeks.

Facebook users had plenty to say about the high price.

Joe Snowden Fletcher posted: “Good news for the seller and real estate agents. Not so great news for everyone else.

 

Source: Stuff.co

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