What’s in a CV?

Buyers love a CV/GV/RV to indicate an initial guideline on price, but are they always relevant? In short, no. Capital, Rateable, Government Values all refer to the same thing – they are a generic rating applied by Council every three years (approximately) for the purposes of establishing how much homeowners should be charged for rates. The total valuation is made up of two parts; the land value, and the ‘improvements’ value (the value apportioned to the home). Algorithms based on sales statistics and other basic indicators are used, and the Council do not visit each home in person for obvious reasons, so it’s easy to see how the broad collection of information could lead to a flawed or inaccurate result.

In respect of land value, the variables that dictate whether a developer or homeowner want to buy a property are vastly different; land contour, aspect, sun/light/wind exposure, views, landscaping, underground services, main street verses quite cul-de-sac, proximity to beach, motorway, shops etc. The same can be said for the ‘improvements’ (house) apportionment of the CV. Any recent renovation, re-build or new build, the addition of a minor dwelling with ‘legal income’ status, won’t be included. Conversely, an issue may exist that could negatively impact a home’s value, such as a plaster home that has suffered water ingress, or sustained deferred maintenance.

Buyers, break down the CV and look practically at any obvious additions or omissions, and sellers, you can always pay to have your CV reviewed, just remember your rates will reflect the value!