Property valuation report in the Netherlands

A property valuation report (appraisal report) determines the value of a property. If you want to get a loan, you need to know how much the house is worth.

The bank uses the valuation report to ensure the property is worth enough money to cover the mortgage.

An appraiser must consider the following factors when determining the value of your property:

  1. Town where the property is located.
  2. Area/ neighborhood of the property.
  3. Environmental factors.
  4. Building condition.
  5. Functionality.
  6. Insulation and energy-efficient regulations.
  7. Surface and capacity.
  8. Homeowners association ( Vve).

An appraisal report indicates any relevant information about a property. For example, information about house owner association ( VVe) or ground lease ( erfpacht).

Besides, a real estate appraiser is often required to be within a certain distance of the residential property being appraised. It is important that your appraiser has a license and know the local market.

A valuation report must be approved by The Dutch Building Value Institute (NWWI). The NWWI checks and validates a valuation so NHG and all mortgage lenders accept it.

From the 1st July, 2021 National Mortgage Guarantee ( NHG ) introduces a new and less expensive way of appraising a home: desktop valuation. The appraiser analyzes, analyses, evaluates and accepts a computer-generated model value. This is done using a statistical model and data on the housing market.

The desktop valuation report can be used for both: buying a house and transferring your mortgage. In both circumstances, the mortgage cannot exceed 90% of the property’s market value.

The desktop valuation report cannot be used in cases of renovation or implementation of energy label changes.