Christchurch's independent
property valuation consultancy:
registered, residential specialists

Auditing Your Red Zone Floor Area

 

Making sure all your pay-out options have been investigated thoroughly

 

Narrow Scope for Purchase Price Objections:

One of the only options to seek an adjustment in the Government’s purchase offer is if your rating valuation has been based on an incorrect floor area.

So the question then arises – how do you know whether your floor area is correct? 

I think it’s interesting to note that for a registered valuer, it is professional best-practice to always undertake an onsite measure-up of a property’s total floor area as part of a registered valuation.  I would never solely rely on the land records data to undertake my valuation calculations.

Although I believe the possibilities of floor area errors are not high, they do occur, and for what’s at stake should be thoroughly audited.

 

Where errors could occur:

a)      Discrepancies between the original measure-up when the house was first built, and current floor areas, due to changes to buildings over time.

Given that most of these properties would never have been revisited, some would have had renovations/extensions over past decades never recorded.  This is less likely to be an issue with newer suburbs, but a good percentage of the red zone is much older housing stock.

b)      Human data entry error between original hard copy figure and that entered into the digital land records database.

 

Audit Steps:

·         The 3 Measurement Numbers You Require:

1.       Hard Copy Number:

You, or your solicitor, need to find out what floor area measurement is recorded on the original hard copy of your property’s Council rating valuation file.  These files are held with the Council’s valuation contractor: Good Earth Matters (GEM Valuations).

2.       Digital Number:

If your solicitor is registered with CERA, they should be able to look up the digital database measurement used in the indexing of your current RV.

3.       Actual Number:

You need to physically measure up your property to provide the actual floor area.

 

  • Now you need to compare all three numbers above – if there is a discrepancy between them, you may have a case to seek a purchase price adjustment.  
     
  • You then need to review this data with your solicitor.
     
  • On his or her advice, it may be worth then instructing a registered valuer to undertake a full registered report.

 

Measuring Up the Floor Area of Your House

Measuring up the foot-print of your property is by no means rocket-science, but it does take a little know-how.  It was certainly something I had to be taught at the beginning of my career as a graduate valuer many moons ago…having since undertaken 1000s of onsite measure-ups they are now second nature.

I know most of my clients would feel daunted by the responsibility of a DIY measure-up!

So I’ve decided to provide a simple onsite measure up service – only available to those home owners in the red zone.

It is not something we would undertake as a ‘stand-alone’ service in normal circumstances – but hey, what’s normal in Christchurch anymore when it comes to property? Just thought it may help...

 

Our Red Zone Floor Area

Measure-Up Service:

  • Bevan Fleming, our senior valuer, will personally undertake onsite measure up
     
  • You will be emailed summary in writing of measure-up details
     
  • Service only available to those in red zone
     
  • Fee = $139.00 incl gst
     
  • If there is a subsequent case for objection – this fee would be deducted from the cost of a full registered valuation report if required


For peace of mind, email advice@valuationsolutions.co.nz for further details.

 


 

 

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We're a current Senior Member of the:
Property Institute of New Zealand
Canterbury Branch

 

MAKING THE NEWS:  PRESS and MAGAZINE QUOTES
'The Press' quotes our valuer, Bevan Fleming - his market insights: 

Uncertainty holds Christchurch down   3 Sept 2011
Gains and losses as deal skews market  24 June 2011
Safe as houses?  10 April 2011
Quake-safe house prices lift   9 November 2010
Plastered homes a risk!   5 July 2010