Information about the building appraisal
The goal of an appraisal
The goal of a valuation is to obtain information about important aspects of your own residence or the one you've bought. Before the bank will provide a mortgage loan, they want to see a valuation. The lender (the bank) wants security about the valuing of the building, so they can base their mortgage loan on that valuation. On top of that, an independent judgment of a professional appraiser is necessary.
The appraiser is the one who creates the valuation. To establish the valuation of your building, an appraiser has to pay his attention on a couple of things:
- Town in which the building is situated.
- Area in which the building is situated.
- Environmental factors (development plan, highway, shopping area, child-friendly neighborhood etc.).
- Presence of garden, garage, balcony etc.
- Condition of maintenance, construction and quality of applied materials.
- Functionality of division.
- Insulation and energy efficient regulations.
- Capacity and surface.
- Obligations and rights that rest on the ground (for example ground lease).
There are external conditions that influence the value of the building as well, like price development and future (building) plans.
NWWI and/or NHG appraisal
The Dutch Building Value Institute (NWWI) is an independent appraisal institute that applies as a validation-inspection mark for appraisers. This appraisal institute operates as control system on the valuation method of the appraisal and the appraised values in the valuation. The NWWI checks and validates a valuation so it is accepted by the NHG and all mortgage lenders.
If your lender demands an NWWI valuation or if you finance your mortgage with NHG, you need a valid valuation. To valid your valuation, you have to pay some extra money. The appraisers will recharge these extra costs. You can compare all NWWI/NHG appraisers here.
Value of the building
A building has different kinds of values. A reasonable asking price for a building is a different value than the rebuilding-value the insurance company wants to trace.
The following concepts are being distinguished:
- The value of the economic traffic;
- The private market value;
- The liquidation value;
- The economical rental value.
- The rebuilding value.
The value of the economical intercourse
The value the tax authority wants to know is the value of the economical traffic of your building. They want to know this to determine the property tax and the rateable value. This value is determined using the law WOZ (Valuation of Immovable Property Act).
The act WOZ determines the value in the economical traffic. The government wants to know the value of your residence because of various taxes.
The taxes, where this value is necessary for, are:
The law WOZ makes sure the appraisals of the valuing expire the same. The local authority is originator of this appraisal and institutes an appraiser who always presumes from the value in the economical traffic (because of the act WOZ). You will receive an order and the determined value from the local authority. You can use this for four years. The report is exclusively meant for the local authority, tax authority and the water authority. If you object within six weeks against the municipal Act WOZ-rating of your house (made up by an appraiser), you can enable an appraiser for the counter-expertise as well.
The private market value
The private market value is the value that your house brings up at purchase or sale. If you have no idea what the estimated value of your building is, we have some tips on the page "Tarieven" to estimate the value of your building.
The liquidation value
The liquidation value is the value your building brings up at a constrained sale, for example when you can't pay the interest rate of your mortgage anymore. The bank wants to know about this value at a mortgage request.
The value the insurance company wants to know is the rebuilding value of the building. This way the insured value can be recorded into the policy and the annual premium can be determined. This value is exclusively based on the building.
Economical rental value
If you want to rent your building temporary you have to know the economic rental value of the building.
The preference of a Valuation Agency
You are free in your choice for an appraiser, though the appraiser has to meet asked requirements, made up by the CHF (Centraal Hypothecair Fonds, translated Central Mortgage Fund), in collaboration with the branch associations (NVM, LMV, RVT and VBO). The Valuation Agencies which are mentioned on our website, all meet these requirements.
You can compare prices of the cheapest appraisers who meet these requirements on our page "Tarieven".
Example valuationHere you can find an example of a valuation
Does a valuation also gives an insight into the architectural condition?
No, though the maintenance conditions will be judged by the appraiser. When the appraiser thinks an architectural research is necessary, he will advise you to let that be done as well.
For a beneficial architectural report, we recommend Keurhuis Nederland.
Below you'll find the appraisal terminology
Private sales value free of rental and usage
The price that would be spent by the party that offered most, free of rental and usage and at the most appropriate way, after the optimum preparing.
Private sales value in rental condition
The price that, at an unconstrained sale, would be spent by the party that offered most, in rental condition and at the most appropriate way, after the optimum preparing.
The liquidation value free of rental and usage
The price that your building at forced public sale, free of rental and usage, would be spent by the most offering party.
The liquidation value at own use.
The price that would be spent by the most offering party, in case of a forced public sale, whereat is assumed that the buyer with the statement (police report) of auction, evacuation of the real estate can achieve.
The liquidation value in rental condition
The price that your building at forced public sale, at presentation in rental condition (with the permission of the lender), would be spent by the most offering party.
The value of a new building, similar to the old one, according to the currently applicable building standards.