I should point out that a house I am interested in buying has been listed by an agent last month. This month the Evalue spiked up up 80k on some of these websites, from what it was just last month. It is now about 150k above the rateable value which was just done in september 2020. QV show that rateable value is the likely selling price at the time it is done less chattels as shown at QV https://www.qv.co.nz/about/about-rating-valuations/ . So there is no justification for the price rise that I can see, as to how it has gone up so much just after it was listed for sale. Especially as have have checked the selling price of all houses in the town over the last year for 2 bedroom houses on similar sized land and based on their locations in the town. I think there needs to be some sort of regulation, because people are using these sites to justify what they are offering. It is a terrible situation for first home buyers especially.
QV valuations for councils are often done with a very broad brush, I know of situation of two semidetached houses where there is a 20% variation in valuation, despite the houses having identical layouts ( inside and out).....
But that said there is a huge amount of FOMO being thrown around by agents at the moment, and there is pretty much nothing that will stop that save the market turning...
The issue I have is that the E-value from QV as of today, and the RV from a few months ago from QV are $140k different. $730k last valued by QV on the 1 Sep 2020 , compared to $870k valued as of 1/4/2021 using QVs Estimated market value. So both values are from the same company as an automated estimated market value at the time they are done. According to the QV website, the only difference is that the RV excludes chattels, which may add up to 20k for 12 year old chattels and carpet that needs replacing. That makes no sense to me at all.
I have heard a property expert say that the RV / CV risn't a market valuation at the time it is done, but purely for councils, so people shouldn't take much notice of it. But that somewhat contradicts the explanation on the QV website. It wasn't that long ago when people mainly used the RV / CV to get an idea on price, and this is why many people used to object to the RV price every 3 years when it came out, for being too low. Especially as if there is a natural disaster, the government may buy your property off you, and they may only pay the RV as occurred in Christchurch, so the RV has to be accurate. So many people in high risk areas could be exposed if their new RV doesn't reflect the current market value less chattels .