Er are several reasons to have a house valued. In most cases, a valuation takes place with a view to securing financing. With an appraisal, the house value is determined. Based on that determination, you know how much money you need to borrow to buy the property, and therefore how high your mortgage loan should be.
Valuation for getting a mortgage
Before granting you a mortgage, a lender wants to know whether the loan can be repaid in the future. The valuation is like a guarantee to the bank that the property you are buying is 'worth the money'. The bank uses a valuation report to assess the risk.
Valuation to determine the asking price
Thinking about selling your home? Then a valuation can help you determine the asking price. The valuer will give you an honest and realistic direction to market your home with
Objecting to WOZ value at the municipality
But a valuation also comes in handy in other matters. For example, you may not agree with the WOZ value the municipality has assigned to your house. In that case, you file an objection. To support this objection, it is advisable to enclose a valuation of the property.
Insure the property
A valuation report also comes in handy when insuring your home. When taking out building insurance, it is useful to know what the reinstatement value of your home would be should something happen. The insurer will ask for a valuation report before providing the insurance.
Building deposit or second mortgage for remodelling
If you want to take out a second mortgage because you want to renovate, you have to be able to prove to the lender that the planned renovation will significantly increase the value of the property. You will get the answer to this by having a valuation carried out.
When buying or selling a house, an appraisal report is required in many cases. An appraisal report gives a clear picture of the current value of a property and you will need it when applying for a mortgage.