When the register value is not equal to market value of a home

19 september 2019

Sometimes there is a big difference between the shelf and the market value on Curacao

Usually the asking price of a house on Curacao is slightly higher than the shelf value. To be able to make a good offer, it is therefore essential to know the correct market value of a home.

In Curacao, the market value is usually determined by brokers and appraisers. The most important factor for the valuation is the location of the house. “Is it in a popular neighborhood, is there a beach nearby, do you look out on a high wall or on the sea? Is it on a main road or on a sandy path and what does the zoning plan actually say? It all affects the value ‘. In addition, the area in which a house is located is important: houses in houses close to the beach or in the middle of the city are usually more expensive because there is a’ enthusiast value ‘: the value goes up because there are many potential buyers who want the house anyway.

State of the house

Appraisers don’t just pay attention to the location. The condition of the house is also important. “For example, is there a lot of overdue maintenance in the building, is there a good kitchen, does the window frames need to be replaced in the short term … everything is looked at. The functioning of the Owners’ Association can also influence the value of the house, as can its sustainability: the lower the energy costs, the higher the value.

Similar homes

All those factors together determine the value of a home on Curacao. Unfortunately, there is no standard value template that you can put over a house. “That is why, as a buying agent, I always look carefully at the prices of comparable homes in the area and I check all possible (legal) sources that can tell me something about the value” ,.

Ledger value

The ledger value is an indication of what a house is worth, determined by an appraiser on behalf of the tax authorities on the basis of the location and surface data and an amount has been determined. The annual tax to be paid is calculated on the basis of the filing value.
You can easily request the register value of a house on Curacao, but it does not give a very reliable picture of exactly how much a house is worth. In fact, there can be a big difference between the market value and the ledger value. This is because the tax authorities do not calculate the filing value every year and the value is sometimes years behind. In doing so, no account is taken of a possible new kitchen or bathroom, and in the meantime add-on parts that were not yet present during the determination of the shelf value.

Check the value yourself

As a home seeker on Curacao you can do that yourself. With the free purchase broker, for example. A buying agent knows the market and can estimate exactly what the market value of the home is for you.

Not the asking price

Again, the home value or register value is usually not equal to the asking price. It can be much higher and your offer may exceed it. That does not have to be a problem. The value of the house for a buyer is by no means always about the price for the location and the stones, but is much more based on feeling. If you feel that this is your dream home that you never want to leave, the value for you will be higher and you are willing to pay a little more. ”

This article was written by Adriaan Smit. For more information about buying and selling homes and commercial real estate, please contact us via email adriaan@sunlife.realty or whatsapp +59996862994

aan & verkoopmakelaar Curacao

Adriaan Smit Sunlife Real Estate CEO & broker

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