Originally Posted by
JohnPagani
I can't get into debating valuations with you, but at the theoretical level, the issue at stake is what you mean by 'worth $1,000,000'. (Do live in Auckland??) My house could be worth what someone will pay for it, what it cost me depreciated, what it will earn me in rents, or what I could sell the pieces for. All of those, for any asset, will have a different valuation. That's why the independent valuation will have a range. Naturally, if I am seller, I will walk around my house pointing out that the tiles cost me $20,000, the kitchen was $100,000, the new school is going to increase prices for land in the area, and so on. And if I'm a buyer I'm going to point out that I have to pay very high heating and rates bills and we are having trouble letting it to reliable tenants. If no one else was likely to be a buyer in the area, then as a house seller, I would expect the agent to present an offer that reflected what the valuer said. It is entirely appropriate for you to look at that valuation then and decide if you want to accept it, hold out for a better one, hope the rental market increases or advocate for a sale of the pieces - that's very much a decision for you and not one I am going to have a view on.