Council Valuation - high compared to val for loan.

[ThomasAJ]

2 mths. ago the lender's valuation was struggling to reach 450K for a property I just bought and now I have received a council valuation of:

Site value: 188K
Improved value: 351K

Thats a 90K or 20% discrepency.

Can I challenge council - practically speaking I mean as I am not going to employ solicitors of course.

 

[Tools]

I challenged the council valuation once and won. It didn't cost anything to do either. I think you will find the procedure for disputing the value on the back of your rates notice.

Tools

 

[HeXa]

I assume by property you mean land+building

rates/land tax in the ACT is based on the ULV (unimproved land value)... the improved value would be more like the total value minus the building value.

have I got the wring idea about what you values are representing?

 

[Howdy Doody]

I always thought the improved value was the total value of the property including the building and land. Have I been wrong all along?

 

[HeXa]

I was thinking more like leveled land that has road access, sewerage and water connections available.

Not sure what the proper definition is... just land value sounds like the land component only, not above ground structures.

 

[Bushy]

I don't recon the council will complain if you want them to lift the improved value to 450k. They will probably rub their hands together when they increase your Rates.

Regards Bushy

 

[Twitch]

I'm missing something here. Council valuation is below market, so what's the problem?

 

[Howdy Doody]

ThomasAJ is saying that the council is valuing his house at (188K + 351K) 539K almost 90K above the lenders valuation. I just rang the council and was told that the improved value is the house and land valuation. So the council has actually undervalued your house by $100,000 which means cheaper rates for you

 

[HeXa]

cool... so the ACT using UIV is a good thing.... well... like being robbed a different way I suppose

 

[flatout]

ThomasAJ is saying that the council is valuing his house at (188K + 351K) 539K almost 90K above the lenders valuation. I just rang the council and was told that the improved value is the house and land valuation. So the council has actually undervalued your house by $100,000 which means cheaper rates for you

Howdy Doody, I think you have that the wrong way around. The council is saying his property is worth $539K compared to a bank valuation 2 months ago which put it at $450K. From an investment point of view one would normally be happy to recieve a high valuation but not in this case. The point here is that the higher the council val. the higher the rates so a lower council val. is more desirable.

ThomasAJ, I would definitely appeal the council val. especially if you can do so without incurring any cost (or only minor cost).

Flatout.

 

[Pushka]

Improved value = house plus land, so the Council valuation is nice and low which means cheaper rates!

 

[Twitch]

Improved value = house plus land, so the Council valuation is nice and low which means cheaper rates!

Exactly.

The two figures aren't meant to be added together, the "improved value" is already a total figure.

 

[ThomasAJ]

I am a dunce .

On the back of the rates notice it says "Capital Improved Value is the total value of property including land.".

So sorry!

 

[Howdy Doody]

I am a dunce .

On the back of the rates notice it says "Capital Improved Value is the total value of property including land.".

So sorry!

Lucky you didn't challenge the council otherwise your rates would have increased