Services Rik Feijen 11 augustus 2021

Difference between valuation and appraisal

Do you have relocation plans and are you curious as to what a reasonable selling price for your current home might be? Then you probably come across two terms during your research: valuation and appraisal. Often it is not clear what the difference is between an appraisal and a valuation, because the results are similar. However, there is a difference between the two terms. In this article, we will explain to you as clearly as possible what the differences are and when you choose for an appraisal or a value appraisal.

What is an appraisal?

If you already own a house and you are planning to buy a new one, you want to know what your current house is worth so you have an indication of the price range in which you can start looking for a new home. You can then enter that amount on websites such as Funda or give it as a guideline to an estate agent. You can then usually have your estate agent perform a valuation free of charge. The appraisal is a calculation that the estate agent makes to determine the market value of your home. The broker does this based on an inspection of your home and its surroundings. The broker then compares the findings with other houses that are comparable to your house and have just been sold. Based on this information, the broker makes an advice on the asking price of your home. This advice is called a value appraisal.

What is an appraisal?

Also with an appraisal, the value of your current home is determined, which leads to the confusion between a valuation and an appraisal. An appraisal is carried out by a recognised appraiser. During the appraisal, just as with a value appraisal, an inspection is carried out of your home, the surroundings and comparable recently sold homes. The findings of the appraiser about the current market value and WOZ value of the house are recorded in an appraisal report.

You need this report, among other things, when you want to take out a mortgage and when you want to take out insurance for your house. When selling your house, it is a requirement that an appraisal report is drawn up. A valuation report is also used to determine what someone's assets are, for example in the event of a divorce or death.

On average, appraisers charge between € 450 and € 500 for drawing up an appraisal report. Incidentally, you can deduct these costs from your income tax.

So what is the difference between an appraisal and a valuation of your home?

The reason why you want to know the market value of your house determines whether you need an appraisal or a valuation. The most important difference is that you cannot derive any rights from a value appraisal, but you can with an appraisal report. So if you want to know the value of your home for official purposes, such as selling your home or applying for a mortgage, you need an appraisal report. The valuation report is used by the bank or a mortgage provider as collateral and therefore it is important that you can hand over a valuation report that is legally valid and validated.

As a rule of thumb, if you only want an indication of the value of your home because you want to start looking for a new one, an appraisal will usually suffice for the time being. The moment you have found your dream house and your offer has been accepted by the selling party, then it is time to request an appraisal of your current house.

Do you want to have an appraisal carried out?

For an appraisal in Eindhoven or surroundings, you can contact Easie estate agents. They can make a valuation for you quickly and free of charge, and they also have qualified appraisers to make a complete valuation report for you. If you want more information about appraisal or valuation of your house, contact Easie estate agents.

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