Property appraisals on Curacao

05 Sep, 2023 en Noticias , Real Estate

Property appraisals on Curacao

Would You Like to Know the Value of Your Property in Curaçao?

As a homebuyer or homeowner in Curaçao, a lot depends on the value of your property. Unlike many other countries, Curaçao does not have a public database with recent sales prices. In addition, almost every property is unique.

Even land prices within the same neighborhood can vary significantly due to factors such as views, wind orientation, or plot location. This makes an accurate property valuation highly dependent on local knowledge and realistic market insight.

Property Value in Curaçao

Property value is crucial for both buyers and sellers in Curaçao.
A seller naturally wants to achieve the highest possible sale price, while a buyer can usually obtain a mortgage of up to 100% of the property value from the bank.

An accurate valuation is therefore essential for both parties. In this article, we explain:

what property value means
which factors influence property value
how property value can be determined
how you can increase the value of your home

What Is Property Value?

Property value usually refers to the market value or the intrinsic value of a home.

Market value: the price a property is expected to achieve under normal market conditions — the amount buyers are willing to pay.
Intrinsic value: the actual value of the property based on its objective characteristics.

What Determines the Value of a Property?

The value of a property is influenced by a combination of property-specific factors and market conditions.

Factors that affect the intrinsic value of a property:

Size of the home, garden, and plot
Number of rooms
Kitchen and bathroom quality
Overall condition and maintenance
Energy consumption
Location
Neighborhood composition
Any negative factors

Factors that affect market value:

Demand for similar properties
Activity of investors in the same segment
Financing options available to buyers
Supply within the same market segment

What Is My House Worth?

There are generally three ways to determine the value and potential asking price of a property.

1. Estimating the value yourself

You can make a rough estimate based on average market prices. However, this method does not account for differences between properties and should therefore only be seen as a general indication.

2. Hiring a professional appraiser

For approximately ANG 500, you can hire a certified appraiser to assess your property. The appraiser evaluates the home, neighborhood, and market using a standardized methodology.
When applying for a mortgage, banks require an official appraisal report, which sellers can also use as a basis for setting an asking price.

3. Assessed (tax) value

The annual property tax assessment includes the assessed value of the property. This value is determined by the government and is often outdated, as the property is usually assessed only from the exterior.

How Can I Increase the Value of My Property?

You can increase property value by:

improving living comfort
reducing ongoing living expenses

Increasing living comfort

Homes with a green garden, a spacious and well-equipped kitchen, and larger bedrooms tend to have a higher value per square meter. A terrace positioned to catch the trade winds also increases comfort and value.

Reducing living expenses

Well-maintained properties avoid costly repairs. Additionally, solar panels, a water well, and proper ventilation reduce energy costs and contribute positively to property value.

What Is the Difference Between Market Value and Assessed Value?

The market value reflects the current value of a property and is used to determine the asking price.
The assessed value is the value set by the government for tax purposes and often lags behind the actual market.

For making an offer or setting a realistic sale price, market value provides a much more accurate reference.

The Asking Price Is Much Higher Than the Assessed Value — Is That Correct?

In a rising market, the assessed value is often lower than the asking price. This does not automatically mean the asking price is unrealistic.
Requesting an up-to-date property valuation provides a more reliable benchmark.