If you are new to the Netherlands, you might discover that the process of buying is not the same as you are used to at home.

For example, the asking price of your dream home on Funda is listed as € 600.000, the WOZ is € 570.000, while the property market value after the appraisal is € 590.000. How does it work in the Netherlands? In this blog article, we explain the following :

The asking price, also known as a listing price - is what you want to get when you sell your home. The seller and the real estate agent determine the property's selling price using different factors—for example, the property's condition, location, size, market value, etc. Potential buyers usually do not pay the asking price but make offers ( place a bid ) on a property.

The seller selects the best bid and conditions that suites their wishes. Knowing that the home's asking price does not determine your maximum mortgage is essential.

WOZ (Waardering Onroerende Zaken) value determines the property's value and taxes homeowners must pay annually in the Netherlands. Each year, your local municipality sends you tax bills to be paid based on your property's WOZ value. You benefit from lower taxes if your WOZ value is lower than the market value.

Besides, the WOZ value is usually lower than the market value because local municipalities determine the WOZ value on the average purchase price/m3 in your area over the year before last. Also, municipalities do not consider some factors, such as property conditions. You can check the property's WOZ value; however, remember that it has little to do with the asking price.

An appraiser determines the value of a property. A home's value can be affected by various factors, including its neighborhood, when it was built, proximity to accessible green spaces or access to major roadways, how much energy it uses, and other factors.

When you buy a home, the market value plays an important role. Your maximum mortgage is based on 100% LtV (loan-to-value). This means your mortgage amount cannot exceed market value.

Once you've found the house of your dreams, the following step is to place a bid. Your real estate agent assists you in making a competitive offer. Hopefully, you will be successful! Read more about how to win a bid in the current market, or schedule a call with us below to calculate our mortgage capacity.