Property appraisal Curacao

3 juli 2017

Valuation of a home on Curacao: when and why?

When you buy a house, the mortgage lender always wants to know what the house is worth. That is why the lender always requires a valuation report. This applies to both the normal sale value and the forced sale value, known as the forced sale value. The value of your home depends on various factors. For example, the location, on Curacao a house on the wind is more attractive than a house that is not on the wind, this saves a lot of steam consumption of an air-conditioning every month, the location where the house is located also plays an important role, whether or not the most important one. the value determination in the same situation, a house located in Jan Thiel or Jan Sofat will be much higher than in the neighborhoods of Santa Maria or Santa Rosa.In addition, the dimensions and structural condition of the house and whether it concerns property or leasehold land are considered. goes. In my blog appraisal I report on this in more detail.

Home appraisal: is it mandatory?

Lenders require a valuation when taking out a mortgage. Sometimes there are exceptions when it concerns, for example, a new-build home. And this project is already known to the bank.
Are you not buying a house in a new construction project, but are you having your own house built with your own architect and contractor? Then a valuation is mandatory.

Call in an appraiser

The appraisal is only carried out when a preliminary purchase contract has been signed, i.e. when the buyer and seller have reached agreement on the price. Real estate agents are often also appraisers. Of course the selling and buying broker are not objective, so a third broker or preferably a valuation agency is engaged for the valuation.
If you buy a home with the help of a real estate agent, your real estate agent usually arranges this. If you do not engage a broker, you will have to find an appraiser yourself. My advice is to engage a valuation agency accepted by most banks on Curacao

Little difference between purchase price and appraisal value

In order to arrange the financing, it is important that there is little difference between the purchase price and the appraisal value. If the home is appraised a lot lower than the agreed sales price, the bank will in most cases never finance more than the appraised value, in which case you would be able to complete the purchase by means of your own investment. It is therefore very important that when you make an offer for a home and a mortgage is required, make the offer subject to obtaining financing, so let the amount of the financing be included in the resolutive conditions. This prevents any claims if the purchase cannot go through. In my blog home finance on Curacao I go deeper into this topic.
When making an offer and accepting a counter offer, you also have to take into account additional costs such as transfer tax, this is 4% of the legal value on Curacao, notary costs and costs for registering the mortgage deed the extra costs the part that also referred to as buyer costs. On average, you could co-finance if you do this, please also state this part in the resolutive conditions.
 

 

If you would like to know more about this subject or are interested in buying or renting a property on Curacao, please contact me at adriaan@sunlife.realty

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Categorieën: financieel, News, real estate agent Curacao

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