Market value, WOZ value and asking price: what is the difference?
- Market value: what a buyer would probably pay now in a normal sale. This is usually what matters.
- WOZ value: the value set each year by the municipality for tax purposes, with 1 January of the previous year as the reference date. In a rising market it lags behind the market value.
- Asking price: the price at which the seller offers the home. It is a choice made by the seller and estate agent, not a valuation.
- Sale price: what was actually paid in an earlier sale. It is recorded in the public Land Registry (Kadaster).
Five ways to estimate the value of a home
1. The WOZ value as a floor
The WOZ value of every home is public and can be viewed free of charge at the WOZ-waardeloket. Because the reference date is more than a year back, the WOZ value is usually lower than the market value in a rising market. Use it as a floor and look mainly at how it develops over several years. More in WOZ value and neighbourhood figures.
2. The last sale price of the home itself
If the home has been sold before, that purchase price says a lot, especially once you adjust it for price changes since then. Statistics Netherlands (CBS) publishes a price index for existing owner-occupied homes, by region. A purchase price from a few years ago, adjusted with that index, gives a reasonable indication. Do take renovations or overdue maintenance since that sale into account. How to find the purchase price is explained in looking up the sale price of a house.
3. Comparable sales in the area
This is the method estate agents and valuers use themselves. Look for homes recently sold in the same street or neighbourhood, of the same type, with a similar floor area and construction period. Convert the sale price into a price per square metre and compare it with the home you want to value. The more comparable the homes and the more recent the sale, the more reliable the result.
4. An online valuation model
A valuation model (also called an AVM, automated valuation model) calculates the value with a computer model based on Land Registry transactions, property characteristics and comparable sales. It takes a few seconds and is inexpensive. A good model also tells you how certain the estimate is. The downside: the model does not know the inside of the home. A luxury kitchen, a new bathroom or overdue maintenance is not reflected.
5. A valuation by a registered valuer
If you need an official value, for example for a mortgage, you need a valuation report from a registered valuer who inspects the home inside and out. It is the most accurate method, but also the most expensive. When you need a valuation and what it costs is explained in house valuation: costs and when you need one.
What determines the value of a home?
- Location: the neighbourhood, the street, amenities and accessibility weigh most heavily.
- Floor area and type: a detached house has a different price per square metre than a flat. See floor area of a house.
- Year of construction and state of maintenance: older homes may need extra maintenance, for example to the foundation or the roof.
- Energy label: an efficient home has lower running costs and is often worth more. See what an energy label says.
- Plot and outdoor space: garden, balcony, parking and the size of the plot.
- Freehold or leasehold: with leasehold (erfpacht) you pay ground rent to the landowner, which lowers the value. See buying a house with leasehold.
How to use the home value when making an offer
Combine several sources. If the WOZ trend, the adjusted last purchase price, comparable sales and a valuation model all point to roughly the same amount, you have a solid basis. If they differ widely, find out why: a renovation, a special location or defects. How to turn that value into an offer is explained in how much to offer on a house.
The Woningdata property report includes the WOZ values since 2015 and the previous sale prices of the home. With the home value option you also get a current value estimate, with the comparable sales it is based on and the last purchase price adjusted to today. You can see beforehand whether a value is available for the address.
Frequently asked questions
How can I find out for free what my house is worth?
Look up the WOZ value and its development over the years at the WOZ-waardeloket, and look for recently sold comparable homes in your area. Convert them into a price per square metre. That gives a rough indication, not an official value.
Is the WOZ value the same as the market value?
No. The WOZ value has 1 January of the previous year as its reference date and is set in bulk for tax purposes. In a rising market the market value is usually higher; in a falling market it can be the other way round.
How reliable is an online home value?
For an ordinary home in an area with many sales, a good valuation model can come fairly close to the actual value. For special homes, or if the condition of the home differs a lot, the deviation is larger. Look at the confidence score and use it as an indication, not a valuation.
Do I need a valuation for a mortgage?
Usually yes. The lender wants a validated valuation report from a registered valuer. An online value estimate is not suitable for that.
Sources
Woningdata
See this for your own address.
Energy label, year of construction, foundation, permits, plot and surroundings of the house you want to buy, in one report. From official sources.
Or browse the sample property report first.