Valuation value vs WOZ value: the difference

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Valuation value and WOZ value: this is the difference

As a homeowner in The Hague, you will come across two different property values: the valuation value and the WOZ value. Both say something about the value of your property, but they are established in different ways and used for different purposes. As a result, the two figures can differ considerably. In this article we explain the difference, and what that means for you in practice.

What is the valuation value of your property?

The valuation value is established in a valuation report, drawn up by a certified valuer. The valuer visits the property in person, assesses its condition, location and features, and compares it with recently sold comparable properties in the area. At Hekking NVM Makelaars, our valuers are NWWI- and NRVT-registered, meaning every valuation report meets the national Dutch quality and validation standards.

What do you need the valuation value for?

A valuation report is required when applying for a mortgage: the lender uses the valuation value to determine how much you can borrow. As a buyer, you cannot borrow more than the valued market value of the property. If the valuation comes in lower than the agreed purchase price, you will need to cover that difference yourself. A valuation report is also often drawn up on sale, divorce or inheritance, to establish an independent, up-to-date value.

What is the WOZ value and how is it determined?

The WOZ value (Waardering Onroerende Zaken, or "valuation of immovable property") is the value the Dutch municipality assigns to your property each year. This value determines, among other things, how much local property tax (OZB) you pay. Unlike a valuation, no valuer is involved: the municipality bases the WOZ value on the sale prices of comparable properties in the area from the previous year, supplied by the Dutch Land Registry (Kadaster).

The reference date is always 1 January of the preceding calendar year. Because the municipality does not automatically visit your property, its current condition is not taken into account. If your property needs maintenance, the WOZ value can therefore turn out higher than what the property is actually worth.

Objecting to the WOZ value

Do you disagree with the WOZ value that has been set? You can object with the Municipality of The Hague (Dutch-language page). You have 6 weeks from the date of the WOZ assessment to do so. If you disagree with the decision on your objection, you can appeal to the court within 6 weeks of that decision. A current valuation report can support your objection.

Why do valuation value and WOZ value often differ?

The valuation value is a snapshot, drawn up by a valuer who physically inspects the property and takes the current market into account. The WOZ value looks back at sale prices from a year earlier and does not take the individual condition of the property into account. In a fast-moving market, such as parts of The Hague, that gap can widen. 

Frequently asked questions about valuation value and WOZ value

What is the main difference between valuation value and WOZ value?

The valuation value is established by a certified valuer based on an up-to-date inspection of the property, and is intended for purposes such as a mortgage application. The WOZ value is set annually by the municipality based on sale prices from the previous year, and forms the basis for local property taxes.

Can I use the WOZ value for a mortgage application?

No, mortgage lenders require an official valuation report from a certified valuer. The WOZ value is not suitable as a basis for a mortgage, as it does not reflect the current condition and market value of the property.

How often is the WOZ value determined?

The municipality sets the WOZ value again every year, with a reference date of 1 January of the preceding year. You receive the new WOZ value with your annual municipal tax assessment.

What can I do if the WOZ value has been set too high?

You can object with the municipality within 6 weeks of the assessment. A current valuation report from a certified valuer can support your objection.

Need help with a valuation or property assessment in The Hague?

Not sure what your property is worth, or do you need an official valuation report for a mortgage, sale or WOZ objection? Our NWWI- and NRVT-registered valuers at Hekking NVM Makelaars are here to help. Want to know, without obligation, roughly what your property is worth first? Request a free appraisal.

Get your property valued

This article was written by Dennis Hekking, Estate Agent and Registered Valuer at Hekking NVM Makelaars in The Hague. Dennis is NWWI- and NRVT-registered and specialises in property valuations across The Hague, including the Archipelbuurt and Scheveningen districts.