Choosing the Right Appraiser to Determine Your Property’s Value

When purchasing or refinancing real estate in Curaçao and the Caribbean islands, obtaining an appraisal report is often essential—particularly if financing is required by a bank. Even if you are not reliant on a financial institution, a professional valuation can be a valuable tool when making an offer on a property.

The Role of an Appraiser

An appraiser provides an objective assessment of a property’s market value, formalized in a detailed report. This valuation serves as a benchmark for determining whether a property’s asking price aligns with its actual worth.

Why Do You Need a Valuation?

• Mortgage Approval – Nearly all banks require an appraisal report to approve a mortgage. The loan amount is not solely determined by income but also by the property’s market value.
• Fair Market Estimate – An appraisal ensures you pay a reasonable price for the property.
• Loan-to-Value (LTV) Ratios – For residents of Curaçao, banks typically finance up to 100% of the appraised value. For non-residents, this figure is generally capped at 70%.

Tip: If purchasing a pre-owned home, it is advisable to request both an appraisal and a structural inspection. A structural report highlights existing defects and the estimated costs of repairs, ensuring you are aware of potential liabilities.

Key Considerations When Hiring an Appraiser

• Independence and Impartiality – The appraiser cannot represent either the buyer or seller as their broker.
• Bank Recognition – Ensure the appraiser is approved by the financial institution requiring the report. Different banks may have varying requirements for the valuation process.
• Validity Period – Most banks require the report to be no older than six months at the time of the mortgage application’s binding offer.

Before engaging an appraiser, consult with your mortgage provider to confirm specific requirements.

Common Appraisal Requirements in Curaçao

• The report must be conducted by a bank-approved appraiser (a list of recognized appraisers is available upon request from most banks).
• Valuation reports are often calculated based on a percentage of the appraised value plus VAT.

Tip: Request cost estimates in advance and clarify any additional fees. Comparing multiple appraisers helps ensure competitive pricing and comprehensive services.

Appraisals for Sellers – An Effective Tool for Pricing

If you are planning to sell property in Curaçao, obtaining a valuation is a cost-effective way to establish a realistic and competitive asking price.

Communicating the Purpose of the Valuation

Clearly state the intended purpose of the appraisal to the appraiser. This ensures the valuation aligns with your needs. Examples include:

• New Mortgage – For apartments, the appraiser may need to verify that the Homeowners’ Association (HOA) reserves at least 0.5% of the reconstruction value for major maintenance.
• Refinancing or Interest Rate Reduction – An updated appraisal may demonstrate that the property has appreciated in value, potentially lowering your interest rate. Some banks accept tax authority valuations; others require third-party reports.
• Renovation – If applying for additional financing, the appraiser can assess the projected post-renovation value, supporting a higher loan request.
• Home Insurance – The appraiser can include the rebuild value in the report to ensure adequate insurance coverage.
• Dispute Resolution or Estate Settlements – Appraisals can assist in legal disputes, inheritance settlements, or challenging tax authority valuations.

Valuing Properties in Competitive Areas

In sought-after areas where properties receive offers above the asking price, consider requesting an urgent valuation from a broker. This ensures you know the true value before the statutory reflection period ends. Additionally, include a valuation clause as a resolutive condition in the purchase agreement to allow for cancellation if the property is appraised below the offer price.

Looking for an Appraiser or Structural Engineer?

With extensive experience working alongside financial institutions and service providers across Curaçao, Sun Life Real Estate can connect you with trusted appraisers and structural engineers to meet your needs.

For assistance or referrals, contact us today:

Let us guide you through the valuation process with confidence and professionalism.