Why your Craigieburn rates valuation can differ from today's property price

The valuation on a rates notice can be a useful reference when you own a Craigieburn home. It can also be confusing when it differs from an agent's estimate, an online figure or a recent sale in the street.

Before deciding that one number must be wrong, check what each figure measures and the date it relates to. A rates notice contains more than one type of value, and its date may differ from the day you are considering selling.

Read the labels next to the numbers

Hume's rates guide describes Site Value as the land value without buildings or other improvements. Capital Improved Value includes the land, buildings and improvements. The notice also records a Level of Value Date and a date adopted for rating purposes. See Hume's guide to understanding your rates.

For a house, comparing Site Value directly with an expected whole-property sale price leaves the building out of one side of the comparison. It is a common source of confusion when someone sees a lower number and assumes their home has been undervalued.

Use the exact label when discussing the notice with an adviser. Keep the original document rather than copying an unexplained number into an email.

Match the value date to the question

Victoria's statutory valuations are made annually under the Valuation of Land Act and undertaken or overseen by the Valuer-General. They are prepared for rating and related statutory purposes. Read the Valuer-General's explanation of these valuations.

A current market assessment asks a date-specific question too. If months have passed since the value date on the notice, sales evidence may have changed. The house may also have changed through renovation, damage, completion of building work or altered condition.

As a hypothetical example, take a Craigieburn home whose kitchen was unfinished when the rates valuation was made and is complete today. The difference in condition would need to be described before comparing the earlier figure with a current assessment. The amount spent is relevant background, but it is not automatically the amount added to value.

Check that the property details are right

Hume says its rating valuation process analyses relevant sales and considers property features such as land size, building age, size and condition. Those details help explain why two houses in the same suburb can have different assessments. Read Hume's property valuation explanation.

If a number surprises you, begin with the description. Is the address correct? Is the notice for the whole title you own? Do your records show a change in floor area or property use that needs to be explained?

Then gather the evidence rather than choosing the highest nearby sale. A substantially larger home, a different land area or a sale on a different date may be a poor direct comparison. Keep photographs, plans and the dates of any completed work with the notice.

Choose the report for the decision you need to make

Selling, reviewing a rates notice and obtaining a report for another stated purpose are different tasks. Tell the adviser which question you need answered before commissioning work. If the concern is the statutory valuation itself, ask Hume about its current enquiry and objection process rather than assuming a private report automatically changes the notice.

An agent's suggested selling range and an online estimate can be useful starting points for a conversation. Ask when the figure was prepared, which property details it uses and what evidence supports it. A number without those details is difficult to assess.

For a private report, provide the rates notice, current title information and relevant plans, along with the required date and purpose. That helps the valuer distinguish a present-day opinion from a question about an earlier assessment.

You can read about property valuation in Craigieburn or send an enquiry to confirm what report scope is available for your particular question.