Almost everyone knows that if you want to take out a mortgage, you need to have your intended home appraised for a valuation. But there are also other situations when to have a property valuation and not only for the financial benefits it may bring. Below are 5 situations when to have a property valuation:
1. Valuation when selling a house
In case you want to sell your house, it may be useful to have your house evaluated. This way, you can get an indication of a suitable selling price. When you are negotiating, you can use the valuation report to support your selling price.
Of course, it is not required to have a valuation report drawn up when selling your house. You can also just have your sales agent give you an indication, but a valuation report comes across as stronger and therefore a good reason to have your house valued for this.
2. Valuation when buying a house
Another moment when to have a property valuation is before you buy a house. If you want to buy a house, you will borrow money from a lender. Usually in the form of a mortgage. Since they run the risk of the investment, they want to make sure the house has enough collateral value to take the risk. These days, there are increasingly stringent requirements, so too with valuations. Especially if you take out a mortgage with the NHG (National Mortgage Guarantee Scheme), appraisals must be carried out properly.
The Dutch Home Value Institute (NWWI) is an institute consisting of appraisers who are checked with strict quality requirements. If you want to take out a mortgage with the NHG, it is required to have your house appraised by an appraiser affiliated with the NWWI.
3. Valuation for WOZ value
Every year, the municipality determines what your new WOZ value is. This is an estimate of your house value. As an owner, you benefit from your WOZ value is high. This is because if your WOZ value has increased, you may be able to pay a lower mortgage interest rate. If the house value is higher than the mortgage, your interest surcharge goes down. This will lower your monthly costs on your mortgage.
If you do not agree with the new WOZ value, you can have your house reassessed to correct the municipality.
4. Valuation in case of renovation
If you have renovated your house, there are two reasons for an appraisal.
You want to look at the new house value so that a new calculation can be made for your home insurance premium based on the added parts. This way, these annexed parts are insured against fire, storm and burglary.
Have you remodelled your home and maybe your house value has increased? This is important to know. In case there is an increase in value after the renovation, you can include part of the renovation costs in your mortgage. So it is useful to do an appraisal after a renovation in this regard as well.
5. Valuation when renovating
If you have a valuation report drawn up, you will also get an overview of any points for improvement. One of these points focuses on sustainability. Of course it is good to know that your house can be more sustainable, but it can also make a financial difference. Having your house appraised will give you an insight into possible energy-saving measures that can be taken, some of which can be included in your mortgage after an appraisal.
> View several sustainability options here
If you buy a newly built house immediately after completion, you do not have to show a valuation report when taking out a mortgage. In case the newly built house is for sale for more than a year, this may change and you will still have to show a valuation report.
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