Why do you need an appraisal report?

Why do you need an appraisal report?

An appraisal report is a relatively expensive document. You need a valuation report to take out a mortgage, or if you want to change it in the meantime. You don't always need a validated appraisal report; sometimes, an unvalidated report is sufficient. Want to know what applies to you and if there are any alternatives to a valuation report? Then be sure to keep reading.

Banks and mortgage providers require an appraisal report to issue a mortgage with the certainty of collateral.

What is an appraisal report?

An appraisal report is an independent report on the value of a house according to the guidelines of the NWWI. An official appraisal report is prepared by an appraiser registered with the NWWI.

A validated appraisal report serves as proof of the value of a house when in fact, there is no set price for it. An appraisal report contains data about many elements, such as location, year of construction, state of repair, and comparable properties.

Why do you need an appraisal report?

You need an official appraisal report to secure or adjust financing for your home. Banks and mortgage lenders require an appraisal report to issue a mortgage with the certainty of collateral. An appraisal report is usually valid for six months, although some banks use three months as a maximum validity.

The mortgage provider wants certainty about the home value. Therefore, an independent and competent opinion is needed. For this, you can use an appraiser. An appraiser is an independent and qualified professional who can determine your home value.

In many cases, an appraiser is also a real estate agent. However, there is a difference between an appraiser and a real estate agent. A real estate agent helps the buyer or seller buy or sell a specific home. Because of this, the real estate agent is not impartial since they are acting in the client's interests. On the other hand, an appraiser must be unbiased and never directly connected to the purchase or sale of the appraised home. Therefore, always check whether your appraiser is affiliated with the NWWI.

If you want to know the value of a house, there are two types of appraisals:

  • Validated appraisal report for applying for a mortgage
  • Unvalidated appraisal report for a valuation or an objection to the WOZ value

The purpose of the appraisal determines which report applies to you; a validated or an unvalidated appraisal report. Financiers regularly require a valuation report validated by the NWWI or Taxateurs Union.

What's in an appraisal report?

You'll find the following in an appraisal report:

  • Location and environmental factors;
  • Maintenance condition (interior and exterior);
  • Area and contents;
  • Layout;
  • Property zoning;
  • Verification of Land Registry data.

To make an appraisal report official, the appraiser must physically visit the house to validate the state of maintenance. This is often done after the building inspection. An appraisal can take 45 minutes to more than an hour, depending on the size of the house.

If you still need to figure out if an appraisal will give you the results you need, it's easier and faster to check the home value at Walter Living. You can do this online for free. Walter Living's home value reports are always objective and based on data.

Check what you need; you only require a validated appraisal report if you want to apply for or refinance a mortgage.

Validated vs. unvalidated appraisal report

The NWWI or the Taxateurs Union validates a valuation report. They assess whether the appraiser and the report meet the entry requirements. When the institute approves the appraisal, it receives a unique code. After the approval, the appraiser cannot modify the report without permission.

You only need a validated appraisal report to apply for or refinance a mortgage. However, a validated appraisal report comes with extra costs, so check carefully whether you need a validated report instead of an unvalidated appraisal or home valuation.

An unvalidated appraisal report can be requested in the following situations:

  • Selling a house If you are going to sell a house and want to know the market value.
  • Buying a house If you are going to buy a house and want to know its market value.
  • Objection to the WOZ value If you disagree with the WOZ value and would like to object to it.
  • Partition If you want to divide the household goods when - for example - you break up. Note: if one of you wants to take over the mortgage, you will need a validated report.
  • Inherit If the homeowner has died and the heir wants to handle the estate.

In short, the difference between a validated and an unvalidated appraisal report is the type you need and the additional costs associated with a validated appraisal report.

What does an appraisal report cost?

How much an appraisal report costs depends on several things. These can vary from one appraiser to another; note if the charges below are included:

  • The fee of the appraiser
  • Land Registry costs
  • Municipal costs
  • Administration costs
  • VAT

On average, you'll pay about €680 for an appraisal report. So it's not a bad idea to compare prices from different appraisers.

Want to make it easier on yourself? With our Walter buying service, the appraisal report is included with our fee.

Alternatives to an appraisal report

If you want to make an opening bid, of course, you want to find out the objective value of the house. Having a validated appraisal report drawn up for this purpose is quite expensive. Fortunately, there are alternatives to an appraisal report:

  • Walter If you want to know everything about a property, Walter is for you. You will find a data-driven home valuation report, based on public data, with documents directly from the Land Registry.
  • WOZ value You can request the WOZ value for free from a WOZ value counter. It is based on the value of comparable homes in the neighborhood. Note: the WOZ value often runs behind the actual value.
  • Buying agent You can hire a buying agent to help you determine the value. This is usually based on the broker's experience rather than national data.

Most mortgage providers require an appraisal report when purchasing a home. Therefore, always consult a licensed appraiser for a valid appraisal report.

Why choose Walter?

A Walter home report is made following the guidelines of an official appraisal report using the standards of the Nederlands Register Vastgoed Taxateurs (NRVT).

You're probably wondering, "What's in a Walter Report?". This is what you will find in Walter's Report:

  • Purpose of the home value report Here, you will find an introduction to Walter and why the valuation was performed.
  • Information object Here, you will find the location, accessibility, and amenities surrounding the property. In short: all the basics at a glance.
  • Land Registry documents Download the Land Registry documents and get insight into the ownership, historical purchase price, and current mortgage.
  • Download the appraisal report as PDF You can download an almost complete appraisal report in Walter as a PDF.
  • Sale prices of reference properties In a Walter report, you will find the transaction prices of comparable properties as an extra.

So with Walter, you can find almost everything about the property you are interested in. In addition, Walter provides you - in various forms - with insight into all data concerning a house.

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