What is the RV?
The RV is the Rateable Value This three-yearly assessment reviews the property’s value in relation to current market values (relative to the properties current RV)
The Council contracts Quotable Value (QV) to perform three-yearly property revaluations to reflect changing market values. In another words, QV will look at how the market has behaved in your area and readjust your RV according to how sales have happened.
Higher RVs will equate to higher rates.
How accurate is the RV?
Not that accurate, unless an owner pays QV to come and review the RV, then at no point does anyone come and review the RV to be aligned with renovations, building changes, etc. If you buy a home with an RV of $320,000 and spend $60k upgrading kitchens and bathrooms, the RV does not magically update.
Which means, you won't really know if the RV has been reviewed at some point or not. Two properties could have same RV and be poles apart in quality.
What other ways can an RV be adjusted?
When a property sells, QV will consider the sale price as an adjustment to the RV. ie; if the property with an RV of $350,000 is sold for $570,000, then at the next 3 yearly review, the RV increase will be weighted significantly towards the sale price.
Reversely.... if you buy a property well below RV, then that will happen also but with a significant drop.
What should I do when buying?
Ignore the RV, look at recent sales in the area, and compare the property you are offering on with others sold in area. Start a spread sheet, save photos from the online listings, and become an amateur property valuerer. Simply using the potentially inaccurate RV value is not a good idea!
As always, find an agent you can trust, and stick with them - a good agent will guide you through an offer process effectively.