Property Valuation Guide

Locatie van het huis

De locatie is vaak een factor die heeft een grote invloed op de waarde van het huis. In a house in the center of Amsterdam or in the city ('s-Gravenhage) That will make a big difference in the property valuation. To arrive at a value, an appraiser will look far in many comparable homes as possible near the property to be appraised. So an appraiser will never compare a house in Amsterdam with a house in Groningen.

Total plot area

An appraiser will get the size of the plot from the land registry (in Dutch: Kadaster). Usually, a property consists of 1 plot, but that does not have to be the case. It is also possible that one or more extra plots belong to the house that was bought later. The larger the total plot with a house, the more value it has. With flats, a plot does not apply. Only the size of the garden if there is one (e.g. in the case of ground-floor flats).

Quality of finishing level

The finish level is a very important factor in the valuation. In particular, the appraiser will look at how high-quality, modern, luxurious and tasteful a property is. In some cases, a property is finished with good materials (an expensive kitchen from a top brand) or a cheap IKEA kitchen. But the difference between the two is that the expensive kitchen adds value and is above all beautifully finished (very modern kitchen that is pink or not too crazy).

Efficient housing layout

The property's layout also plays a crucial role in what the appraiser finds inside and around the property matters. "You could say that there is a beautiful 110m2 house with four bedrooms, but if that same house has a cramped layout, it loses potential buyers," says an appraiser. For example, a house with 4 bedrooms, of which 2 bedrooms are so small that they cannot accommodate a wardrobe, does not score well. Or a house where you have to walk through the toilet upstairs to get to the other bedrooms. These types of layouts put off potential buyers on the market. And how would the market now react to how the property is constructed and laid out?

Ownership situation

In the house on the lot and how it stands in full ownership or in a ground lease (and what the conditions and costs of that ground lease are). Every month I get a ground lease that rises every few years in that applies. What we also see is a lot is that there an applicable ground lease that is forever and where the amounts can sometimes rise to quite a lot. Compared to a similar property that is fully owned, one can have very costly ground rent when there is a ground lease.

Outbuildings

Think of outbuildings as garages, sheds, garden sheds, storerooms, etc. If you have 2 more of these similar properties and 1 of those houses has a big garage and the other has nothing, the property with the garage will of course have a higher property value. This is due to the house's surface and additional function.

The current state of the house

The maintenance of a property is a very important component in determining the value of the property. When the appraiser is recording the property, the appraised is required to state the current state in which each building component is valued for quality. Something can have the following status:

• G = Good
• R = Reasonable
• M = Mediocre
• S = Bad
• NV = Further investigation
• NW = Unacceptable

If an appraiser values a building component (e.g. gutters, painting, roof, walls), they will also include an estimation of the costs of the defects or maintenance. They include an estimation of the repair cost for that component in the report.

The surface of the house

And of course, there is the living area. In most cases, this is the most weighty component for the appraised value. The larger the living area, the better for the property value.