The Truth About RVs: Why They Don’t Always Reflect Your Home’s Market Value
In the ever-evolving world of real estate, one thing remains certain – the rateable value (RV) of a property doesn’t always match up with its true market worth. This has been particularly evident in Wellington, where RVs have seen significant fluctuations, dropping by over 20% in 2021 alone. But according to top agents Alexia Stoddart and Chris Robinson from Tommy’s Real Estate, it’s crucial to not get bogged down by these numbers.
Chris puts it simply: “RVs are all over the place.” He points out that despite the new RVs, the office has consistently managed to secure higher prices for homes—often well above their revised RV. “We try not to put too much stock in RVs,” he says, noting that most buyers and sellers are aware of this inconsistency.
Alexia concurs, adding that prior to the RV drop, properties were generally selling for around 20% below the old RV. Now, however, they’re seeing homes sell for above the new RV figures. For her, the market and the individual property itself are the true indicators of value, not the arbitrary numbers assigned by the RV system. “I haven’t met a vendor who’s happy with their new RV,” she admits. The drop in values can be particularly frustrating for those who’ve invested time and money into home improvements, only to see the new RV fall well below their expectations.
Both Alexia and Chris agree that market conditions play a much bigger role in determining a property’s price. In fact, during Wellington’s recent boom, they saw homes selling well above the RV, and now, with the RVs dropping, properties are still managing to secure prices above the revised values. “The market will always determine a property’s worth more than the RV,” says Alexia.
So, what should buyers and sellers take away from this? Chris recommends focusing on market data and directly comparable properties, rather than relying on the RV. “Do your homework, visit properties in similar areas, and compare like-for-like. That’s the best way to gauge a property’s true value,” he advises.
Despite the ups and downs of RVs, the market remains steady, with Tommy’s agents reporting a busier period as more buyers return with increased confidence. “There’s a lot of stock and choice for buyers, but properties are still selling, often before their deadline,” Alexia says. Chris adds that open homes are seeing more foot traffic, particularly for well-presented homes.
Looking ahead, both agents are optimistic about the market’s future. While they expect listings to dip slightly as we head into the cooler months, they also anticipate that buyer confidence will remain strong as interest rates stabilise. Alexia believes that steady stock levels and motivated buyers will keep things moving smoothly, and we can expect properties to continue selling before deadlines.
In the end, it seems the key takeaway is this: When it comes to real estate, don’t let the RV dictate your property decisions. Trust in the market, do your research, and focus on what truly matters – the right home at the right price.
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