You had your home appraised by a licensed and independent appraiser. Through your received appraisal report, you are aware of the value of your home. Unfortunately, it was still not possible to find a buyer at this price.
How does this come about? Is the appraisal report incorrect? How is there a difference between appraisal value and resale value?
In this article, we explain to you what appraisal value and resale value are. We also explain to you right away the difference between appraisal value and resale value, so read on!
What is the appraisal value?
Appraisal value is the same as market value. This is according to the official definition:
“The estimated amount at which property would be transferred at the ‘value date’ between a willing buyer and a willing seller acting independently after proper marketing, where the parties would have acted knowledgeably, prudently and not under duress.”
Simply put: on paper, this should be what the market would want to pay for if a property were offered for sale at some point in time in the condition as that property then finds itself (rented or unrented, super tight or completely rundown).
Nor is there then any coercion, because the bank’s home must be sold, for example. That “that value date” is very important. After all, that could be today, could be tomorrow, could be next week, but could also be 10 years in the past.
What is the resale value?
Sales value is the value of what a buyer actually paid for that property.
What is the difference between appraisal value and resale value?
The assessed value is a theoretical value on paper. Also, if we appraise your home for €500,000 that does not mean that your home will actually sell for €500,000 next week.
But it is the value that we can explain and substantiate on paper. How the market is going to react is up to the market. We experienced a very crazy time when homes were sold far above the appraisal value every time. So the sales values turned out to be higher than the appraisal values. We are now again (at the time of writing this article) in a time what appraisal values tend to be higher than sales values.
That, in turn, is because the market is now dropping rapidly again and the prices of homes sold and the price indexes are again lagging behind the market itself. Appraisal value and sales values are very often the same, but therefore MAY differ.
Have you just had your home appraised for €500,000 and now want to make an offer on a new home. Then don’t make sure you blindly assume the appraised value of what your house is currently fetching. Be well advised by a licensed mortgage broker before determining your bid amount.
Arranging an appraisal
Now you clearly know the difference between appraisal value and resale value! Would you like to sell your house? Then you can come to us if you need an appraiser or sales broker.
We can serve you in at least the following areas:
Aalsmeer, Amstelveen, Amsterdam, Badhoevedorp, Bakkum, Beverwijk, Bloemendaal, Castricum, Cruquius, De Kwakel, Driehuis, Haarlem, Halfweg, Heemstede, Hillegom, Hoofddorp, IJmuiden, Koog aan de Zaan, Krommenie, Lisse, Nieuw-Vennep, Overveen, Santpoort-Noord, Santpoort-Zuid, Spaarndam, Uitgeest, Velserbroek, Vijfhuizen, Vogelenzang, Westzaan, Wormer, Wormerveer, Zaandam, Zaandijk, Zandvoort and Zwanenburg.
Call or app Floris at 06-47470404 or floris@vkmakelaars.nl or just fill out this form. If you have any questions or need more information, you are also welcome to contact us without any obligation!