Property appraisals on Curacao

21 januari 2020

What is home value? 

Home value usually refers to the market value or intrinsic value of a home. The market value of a home is the amount that a home will yield on a sale under normal circumstances, or the price that buyers in the market are willing to pay for a particular home. The intrinsic value of a home is what a home is actually worth. 

What determines the value of a home? 

The estimate of the value of a home depends on various factors related to the home itself and the market demand for such a home. 
Factors that influence the intrinsic home value: 

  • Surface of the house, garden and other plots 
  • Number of rooms 
  • Kitchen and bathroom amenities 
  • Condition 
  • Energy consumption 
  • Location 
  • Neighborhood composition 
  • Negative factors 

Factors influencing the market value:

  • How much demand is there for the same type of houses 
  • There are investors active in the same segment 
  • Financing options for potential buyers 
  • There is more supply in the same segment 


What is my home worth? 

There are roughly 3 ways in which you can determine the value and possible asking price of a home. 

Calculate the home value yourself 

You then make an estimate yourself based on an average price increase in the market based on all homes sold. The relevance of these transactions is not taken into account, so that the sales of much larger and more expensive buildings or other non-comparable homes are also included in the estimate. Not every home is the same, so keep in mind that this calculation assumes that your home has undergone exactly the same price development as the general market. 

  • Hire an appraiser to come by 

From NAF 500 you can have the value of a home estimated by an appraiser. Appraisers look at the home, neighborhood and market and arrive at an appraisal of the value according to an established method. When taking out a mortgage, the bank asks for a valuation report. As a home owner, you can also use this to base the asking price of your home on. 

  • Register value 

The annual property tax bill states the legal value of the property. This is the value based on what the tax authorities have had the property appraised for. Please note that these valuations may be outdated and the house is only viewed from the outside of the street. 

How can I increase the value of my home? 

You can achieve an increase in value by increasing the living comfort of your home or by lowering the housing costs. Housing costs include maintenance costs and (rising) energy prices. 

  • Increase living comfort 

Homes with a (greener) garden, spacious kitchen with all amenities and larger bedrooms are worth more on average per square meter. Also a terrace on the wind to enjoy the garden until late in the evening means that buyers on Curacao are more willing to pay for a home. If you can do something about these kinds of factors in your home, you will not only have the opportunity to increase the value of your home, but you will also sell the home much faster. 

  • Lower housing costs 

Maintenance condition of a home: A poorly maintained home entails additional renovation costs and time to be invested for the buyer. On the one hand, this concerns maintenance of the construction of the house, such as the window frames and the condition of the roof. On the other hand, it is about embellishment, such as a well-kept garden and skirting boards in every room or sockets that are covered. Doing the renovation yourself for sale therefore yields an increase in value. In fact, there are people who earn a living by buying up old properties and renovating them. Energy efficiency of a home: Solar panels, a well and good ventilation in principle increase the home value. They ensure lower energy costs, so that a home owner has more money left over every month. Potential buyers are therefore willing to pay more for a home where this investment has already been made. 

What is the difference between the market value and register value of a home? 

The market value is the current value of a home and is used to determine the asking price for a home. The register value is the value of a home on a certain date according to the government. The tax authorities use this value to determine how much property tax you must pay. 
If you are going to bid on a house, it is wise to have a reference of the price. The market value then provides more accuracy in determining an opening bid than the leader value. 

The asking price is much higher than the shelf value, is the asking price correct? 

The short answer is: In a market where selling prices are rising, it is normal for the bar value to be lower than the asking price. But that does not mean that the asking price is not too high. the register value is the value of a home according to the government and this may have been determined years ago and usually the home has not been carefully examined. When prices in the market rise rapidly, the bar value will almost always be lower than the market value and therefore the asking price. To determine whether the difference between the register value and the asking price is reasonable, you can request the home value. This is based on recent market information and is also used by most estate agents on Curacao to make an estimate. 
If the legal value is considerably higher than the market value, you will pay too much property tax annually. By submitting an objection to this assessment and being able to demonstrate the correct value by means of a valuation report, in most cases a correction will take place on the register value. Lowering the filing value can save a lot of money in the long term. 
More information on this subject via 
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