What is WOZ value?
WOZ stands for wet Waardering Onroerende Zaken (Valuation of Immovable Property Act). The WOZ value is the value of a home as described by the municipality, and it forms the basis of municipal taxes and levies. It is determined each year by the municipality, and the WOZ value is the estimated market value on the reference date of January 1 of the previous year.
The WOZ is determined by the municipality and is based on the following:
- Sales figures
- Location of the property
- The volume of the property
- Living area of the property
A WOZ value is valid for one year and redetermined yearly. Also, the WOZ values are public so that everyone can compare their house with the value of other homes.
What is my current WOZ value?
With Walter, you can quickly discover the WOZ value of a home. You can do this by searching by address, and on the detail page of a home address, you will find the WOZ values of the house in the price history.
When do you need the WOZ value?
If you want to apply for a mortgage, you need the WOZ value. The mortgage company wants to know if the home value and mortgage match the mortgage standards. Sometimes, lenders agree to take out a mortgage based only on the WOZ value. In that case, an appraisal report is not necessary. Usually, this is not the case, and you need an appraisal report.
Why is an accurate WOZ value relevant?
The WOZ value affects several aspects, so it must be correct. Firstly, the WOZ value is used as the basis for levying various taxes by municipalities, water boards, and the Tax Administration. Municipalities use the WOZ value as the basis for property tax (ozb), waste disposal levy, and sewerage levy. The Tax Office uses the WOZ value for income, gift, and home inheritance taxes. The higher the WOZ value, the more tax you pay.
Finally, a higher WOZ value can lower your mortgage interest rate when the risk to the lender decreases. Are you wondering where to find the WOZ value? Check your home on Walter Living. When you create a report of the house, you'll see the WOZ value. On a detailed page of a house, you'll also find the WOZ values of reference properties. All data comes directly from the WOZ value office.
You can object to the municipality if you disagree with the WOZ value.
Objecting against the WOZ value
Municipalities sometimes need a better picture of the houses in their municipality. This isn't favorable because a higher WOZ value affects your wallet. As a homeowner, you can object to the WOZ value in your WOZ assessment. This has to be done within six weeks of receiving the WOZ assessment. After that, you file an objection with your municipality. You can make a formal objection directly or use eerlijkewoz.nl. They can file a complaint for you.
WOZ value 2023
In the Netherlands, every year on Prinsjesdag, new tax plans for the following year are presented. One of the changes concerns the WOZ value of your house. The Valuation Chamber estimates that the WOZ value will increase by an average of 17% in 2023.
One benefit of the WOZ value increase is the decrease in the owner-occupied home tax, but this depends on several factors, such as your income and the increase in the value of your home.
Is WOZ value the same as appraisal value?
No, the WOZ value is not the same as the appraisal value. The reference date of the WOZ value is at least 12 months before the WOZ value, so it is at least one year behind on market developments. In addition, the WOZ value calculation looks at housing transactions similar to the home for WOZ value issuance. Those housing transactions usually occurred 6-12 months before the assessment date. That means the WOZ value is about 18-24 months lagging compared to the actual home value.
Therefore, the WOZ value is often of little use when determining the value of a home. However, it may indicate that a house's asking price is remarkably low if it is equal to or lower than the WOZ value. This requires further investigation and perhaps an explanation from the sellers. If there is no sign of a sharply declining market in house prices, the sales agent has deliberately set the asking price very low to attract many visitors, bids, or otherwise.
How does the municipality handle the WOZ value?
The way the WOZ value is handled differs in each municipality. For example, one municipality updates the WOZ value yearly to keep up with market movements. Therefore, when a house is sold, this also substantially revises the WOZ value the following year. At the same time, in another municipality, if a home has not been sold for ten years, the WOZ value has never had such an update and is substantially outdated compared to the actual home value.
Public officials set the WOZ value and only sometimes have access to the best helpful technology, like real estate agents and home appraisers. The municipality estimates based on publicly available home characteristics and consults past home transactions. You may receive a letter from the municipality asking you to indicate how new or luxurious your home interior is. The municipality uses the answered questions to estimate the WOZ value better.
Walter Living calculates a home's value for you within 30 seconds.
WOZ Value and house value
In addition to the WOZ value and the appraisal value of a home, there is another way to determine the value of a house. Walter Living calculates the value of a house in the Netherlands for you within 30 seconds. It does not matter whether the house is for sale or not. At Walter, you will find the home value based on current market prices and comparable homes in the neighborhood.