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An often asked question by homeowners is whether or not to update their RV prior to selling.

Firstly, your RV or Rateable Value is a figure that is set by QV or Quotable Value so that local councils can collect rates. These RV’s are generally set every three years and QV uses mathematical formulas to calculate them. They have access to all house sales that have happened over the previous three years and also have records from councils about work that has been consented and its value but seldom do they physically look at any properties.

This means that if you have done work that didn’t need consent such as replacing fittings in a bathroom(like for like) or possibly replacing a kitchen, redecorating or changing carpet or even landscaping, then the council (and therefore QV) have no idea. All the above would have improved the value of your home but that won’t be reflected in your RV.

Many people believe that the sale price of their home is directly related to the RV and therefore by updating (increasing) the RV they will increase the sale price of their home. In reality the sale price is determined by other factors such as presentation, the competition in the market and the emotional attachment of the buyer to the home, none of which have anything to do with the RV.

At the beginning of the three year cycle your RV might be close to the market value, by the end of the three year cycle it is likely to be less so.

One thing to remember is that once you update your RV you are stuck with it. If it is lower than you expect it is very difficult to get it changed and if for whatever reason you decide not to sell you are then going to have a higher rates bill than you would if you had not had it updated.

I believe you should come and talk to me before you make the decision as sometimes it is the right thing to do and sometimes it isn’t. If you do decide to go ahead I can provide you with a record of recent sales that compare to your home which you can use to justify to the person from QV why you think your RV should change and what to.