Valuation report: determining your home's value

The key points in short

A valuation report is often requested by mortgage providers to have the true value of your home established. This is carried out by an independent appraiser.

1. What is a valuation report?

The valuation report calculates several values for the property: the market value, the WOZ value (municipal property valuation) and the rebuild value. The market value is the property's value when you're not in a hurry and are not forced to sell. The WOZ value, or Waardering Onroerende Zaken (property valuation), is used for tax purposes and is determined by the municipality. The rebuild value, finally, is the amount needed to rebuild your home from scratch.

2. Components of the valuation report

Various factors determine the value of a property and are therefore included in the valuation report:

• The surroundings and location of your home
• The type of property
• The condition and maintenance of the property
• The surface area and volume of the property
• The layout of the property
• An update on the zoning plan
• A check of the data held in the Kadaster (land registry)
• The size, nature and layout of the land around the property
• Ownership of the ground (leasehold)
• The accessibility of the property and available parking
• The structural and technical quality of the home
• The market situation for the property

3. What are the appraisal costs?

When buying a new property, there are buying costs involved. One component of these costs is the fee for having an appraiser draw up a valuation report. To verify that the asking price reflects the actual value of the property, it's important to have a valuation report prepared. It is also often a requirement when taking out a mortgage. If you take out an NHG loan (the national mortgage guarantee), you are required to submit a valuation report. Want to know how much you can borrow for the property? Calculate how much mortgage you can get.

The cost of a valuation report is often not fixed and can be negotiated. Frequently it involves a percentage of the value of the property, meaning costs are higher when your home is worth more. It's also possible that the appraiser has set a fixed fee, in which case you know in advance exactly what you'll pay for the appraisal.

Sometimes the appraiser also needs to carry out additional research. For example, they may check the ownership documents to confirm that the seller is indeed the lawful owner of the property. The costs for this and other research vary by municipality. The appraiser also needs to be verified themselves, which is done by a validation institute. In short, bear in mind that there are costs involved in having your property valued that are not always determined in advance.

4. Acceptance of the valuation report by the mortgage provider

If the valuation report meets the model established for the nationale hypotheek garantie (NHG, the national mortgage guarantee), it will also be accepted by the mortgage provider.

You can choose from multiple appraisers, but make sure the valuation report meets the requirements of your mortgage provider. It's always better to have your valuation report drawn up by an accredited appraiser. You can check this by looking for recognised quality marks such as Nederlandse Vereniging van Makelaars (NVM), SVM NIVO, VastgoedPro or VBO Makelaar. That way you can be sure the report will be accepted by the mortgage provider.

When selecting an appraiser, make sure they have sufficient knowledge of the local housing market to properly assess all components of the valuation report. The appraiser must not, of course, be your own buying agent or that of the seller. Also note that the valuation report is usually not allowed to be more than 6 months old.