What Is in a Property Valuation Report? A Practical Guide
Learn which sections appear in a Dutch residential property valuation report, how to read the value reasoning, and what to check before using it for a mortgage.
TL;DR: what is in a property valuation report?
A property valuation report is a written record of a professional opinion about a home’s value on a stated date and for a stated purpose. It describes the assignment, property, legal position, inspection, value basis, market evidence and reasoning behind the assessed value. It often includes supporting documents and terms that help the reader interpret the result.
When you inspect a report, compare its stated property type and value date with local context such as property valuation in Vergelijken Waarop Letten, Amsterdam before relying on the conclusion.
The NRVT’s residential valuation standards connects reporting requirements with the value basis, valuation date, property details and evidence supporting the value.
NWWI explains to consumers that a report from an affiliated valuer is checked against clear guidelines.
When the report arrives, compare its purpose, date and evidence with reading a valuation report.
The exact structure depends on the report format and the party receiving it. A mortgage report can have different requirements from a valuation for a sale, letting, inheritance or division of assets. Start by checking why the report was commissioned and who must accept it.
If you are valuing a home, match residential property valuation to the purpose, valuation date and report recipient.
NHG lists requirements for a physical valuation report such as an independent report maker, an accepted validation institute and a report no more than six months old from the valuation date.
What will you learn here?
- 1. Assignment, purpose and report recipient
- 2. Property details and legal position
- 3. Inspection and condition of the property
- 4. Value basis, valuation date and assumptions
- 5. Market value and valuation method
- 6. Comparable properties and value reasoning
- 7. Validation and acceptance
- 8. Appendices and supporting documents
- 9. How to read the report in ten minutes
- Common mistakes
- Frequently asked questions
1. Assignment, purpose and report recipient
A valuation starts with an assignment. The report section should identify the client, the property, the purpose of the valuation and the party that will use the report. It should also show which arrangements were made before the work began.
When you compare the two figures, WOZ value and market value helps you understand why they can differ.
The NRVT’s residential assignment requirements lists subjects such as the client, property, interest, value basis, valuation date, information sources, assumptions, limitations, fee and any previous involvement by the valuer.
Use this as your first check:
- Purpose of the valuation
- Check whether the report is for a mortgage, sale, letting, refinancing, inheritance, division of assets or another question.
- Report recipient
- Write down which lender, adviser, notary, court, municipality or other party will use the report.
- Valuation date
- This is the date to which the value relates. A later signing date does not automatically make the value more recent.
- Assumptions
- Read which information, assumptions and limits form part of the valuation.
A report can be well prepared and still fail to meet the recipient’s requirements when the assignment or format does not fit the case. Ask for those requirements in writing before commissioning the report.
Before you book an inspection, ask the lender which valuation report the lender accepts fits your application.
2. Property details and legal position
The report should make clear which property the valuer inspected. You will usually see the address, property type, location, construction year, floor area, layout and plot. Photographs and a written description help identify the object.
If you want to compare Dutch terminology, the Dutch valuation report contents can help you check the assignment, valuation date and supporting evidence.
The legal position can affect use and value. The report may cover ownership, leasehold, an apartment right, the owners’ association, letting, easements or other rights and obligations.
Before you compare fees, ask each provider about property valuer selection for your property and report recipient.
Look for these sections:
- Property identity
- Compare street, house number, postcode, property type and plot with your purchase documents, ownership information and application documents.
- Floor area and layout
- Check living area, other indoor space, external storage, outdoor space, rooms and any extensions.
- Ownership and leasehold
- Read whether the property is freehold, leasehold, an apartment right or another legal interest. Check term, ground rent and conditions when they apply.
- Owners’ association and use
- For an apartment, service charges, reserve funds, maintenance plans and use rules may appear. Letting or a special designation can also matter.
- Area and planning context
- Location, access, amenities, noise, planned construction and the use of nearby land can form part of the assessment.
An error in the address or floor area can affect the comparison and assessed value. Tell the valuer about factual errors as soon as you find them.
The NRVT decision about understandable valuation reports stresses that a report should record the professional assessment and reasoning in a way a third party can understand.
When you compare proposals, include property valuation costs in the total so extra work does not come as a surprise.
3. Inspection and condition of the property
For a physical valuation, the valuer visits the property. The inspection can cover the inside, outside, location and surroundings. The NRVT guidance on property inspection explains that the valuer assesses the property and surroundings and records when the inspection is limited.
The report may include observations about:
- maintenance and building condition;
- the quality of the kitchen, bathroom, installations and finish;
- foundation, roof, façades, frames and moisture where these are visible within the inspection;
- energy label, insulation and energy-saving measures;
- alterations, extensions and deferred maintenance;
- location, noise, outlook, access and surrounding factors.
A valuation gives an opinion of value. It does not replace a building survey. If you have concerns about structure, moisture, asbestos, foundations or installations, a separate specialist may be needed. Write down which question that inspection should answer.
Before you compare fees, ask each provider about property valuer selection for your property and report recipient.
4. Value basis, valuation date and assumptions
The value basis states which kind of value the valuer is assessing. A mortgage valuation often concerns market value. The report should explain the meaning of that value and state the valuation date.
If you need a mortgage report, match mortgage valuation to the lender’s requirements before you book an inspection.
Check these details carefully:
- Market value
- This is an opinion about what the property could achieve on the market under stated conditions on the valuation date.
- Valuation date
- The market and the property can change after this date. Use the value in the context of the assignment’s purpose and date.
- Special assumptions
- A planned renovation, different legal position or missing information may appear as an assumption or special assumption.
- Limits and uncertainty
- Read which parts could not be examined and how that may affect the way you interpret the value.
When information is missing, the report should show how the valuer dealt with it. This makes follow-up questions easier and keeps an assumption separate from an established fact.
5. Market value and valuation method
The report usually states the assessed value in figures and words.
The valuer also explains how the conclusion was reached. A residential assessment may draw on comparable sales, property features, condition, location and market conditions. The report should show which features led to adjustments against the comparable properties.
Check:
- the assessed market value;
- the value basis and valuation date;
- the method or approach used;
- the factors that increased or reduced the value;
- the notes about unusual property features;
- the valuer’s signature, date and registration details.
A valuation is a professional opinion for a defined purpose and date.
It does not mean that a lender will grant a mortgage or that a buyer will pay exactly that amount.
6. Comparable properties and value reasoning
Comparable properties are sold or otherwise useful homes that help the valuer assess the subject property. The report may show address, sale date, sale price, property type, floor area, plot, condition, location and unusual features.
The comparison becomes easier to assess when you can follow why a comparable was chosen and why differences led to an adjustment.
Check the comparables for:
- Location
- A home in the same town can still have a different street, noise level, access, outlook or building context.
- Sale date
- The market can change between a comparable’s sale date and your valuation date.
- Property features
- Floor area, plot, condition, energy performance, extension, garage, garden and outlook can differ.
- Reason for the adjustment
- The report should give the reader a way to understand how differences were taken into account.
A list of sale prices says little on its own. The explanation of the choice and the adjustments helps you read the value reasoning.
7. Validation and acceptance
A valuation report can be checked by a validation institute.
After approval, the consumer receives the validated report digitally.
Validation gives information about a report check within the rules of that institute. The lender remains the party that decides which report, date and additional documents it accepts in a mortgage file.
National Mortgage Guarantee, called NHG in the Netherlands, has its own requirements.
Check current requirements with your lender or adviser.
Check these points:
- whether the correct report format was used;
- whether the intended recipient accepts the validation institute;
- whether the valuation date falls within the recipient’s time limit;
- whether names, address and file details are correct;
- whether comments from the validation institute were addressed.
8. Appendices and supporting documents
Appendices give context to the text and value assessment. The documents included depend on the property and the assignment. The NRVT guidance refers to property information, photographs, measurement details, an energy label, renovation information and details about the condition of the building.
You may see:
- photographs of the property and surroundings;
- a measurement report or floor-area details;
- floor plans and drawings;
- leasehold or apartment-right information;
- owners’ association documents for an apartment;
- an energy label and information about insulation or installations;
- permits, quotations, invoices and a renovation specification;
- comments or documents from the validation institute;
- assignment terms and the engagement confirmation.
Check that the appendices belong to the right property and assignment. A document in your own file is not part of the valuation report until the valuer has assessed it or included it.
9. How to read the report in ten minutes
Use this order when the report arrives:
- Read the first page. Note the purpose, client, report recipient and valuation date.
- Check the property. Compare address, property type, floor areas and plot with your own records.
- Review the legal position. Look for ownership, leasehold, apartment rights, owners’ association and letting.
- Read the inspection. See which areas were examined and which limits are recorded.
- Find the value basis. Check which value is assessed and on what date.
- Read the assumptions. Mark planned works, missing information and conditions.
- Review the comparables. Ask questions when the selection or adjustments are unclear.
- Check the appendices. Confirm that photos, plans, measurements and other documents belong to the property.
- Check validation. Confirm that the format and institute fit the intended recipient.
- Write down errors and questions. Send factual corrections and content questions to the valuer or adviser before using the report.
Common mistakes
- Looking only at the final amount
- The value gets its meaning from the assignment, date, assumptions and evidence around it.
- Confusing WOZ value with market value
- A WOZ assessment belongs to a municipal tax process and has its own valuation date.
Report it quickly and ask what correction is needed.
Frequently asked questions
Is a property valuation report the same as a building survey?
No. A valuation report gives a supported opinion of value for a stated purpose. A building survey focuses on defects, maintenance and technical risks. If you have concerns about the condition of the property, both documents may be useful for different questions.
Does a valuation report include the WOZ value?
It may, depending on the report format and available information. A WOZ assessment belongs to a municipal tax process and does not replace a mortgage report. Check the valuation date and purpose of each figure.
How long is a property valuation report valid?
The time limit depends on the recipient and purpose. For a physical valuation under NHG, NHG states a maximum of six months from the valuation date. A different lender may use its own time limit.
Does a validated report mean that my mortgage will be approved?
No. Validation and credit assessment are separate steps. The lender also reviews income, loan amount, conditions and other documents in the file.
What should I do if the address or floor area is wrong?
Contact the valuer as soon as possible and explain which source shows the correct information. Ask the recipient whether the report must be resubmitted after the correction.
Will planned renovation always appear in the assessed value?
That depends on the assignment, report format, available information and recipient requirements. Ask in advance which works will be assessed and which assumptions will apply.
Can an expat understand a Dutch valuation report?
Dutch terms and report conditions can be difficult when you are new to the system.
Ask your adviser or report recipient which explanation or translation is needed.
What should I ask before I use a report?
Ask who accepts the report, which date applies, which validation is required, which assumptions were used and how corrections are handled.
Your next step
When you receive a report, start with the purpose, recipient, address, valuation date and value basis. Then note questions about the inspection, comparables, assumptions and validation. This gives you a focused discussion with your mortgage adviser, lender or valuer.
Beste Taxateur publishes general information and does not issue individual valuation reports.
This information is general and does not replace mortgage, building, legal or tax advice. Check current requirements with the party receiving the report.
Beste Taxateur helps you organise the questions and evidence around what is in a property valuation report, so you can compare providers and prepare the next step. The relevant lender, adviser, municipality or other party decides which report or evidence it accepts.
Ask a question about what is in a property valuation report