Increasing WOZ value
The tax bill
At the end of February, all homeowners in the Netherlands will receive a tax bill from the municipality. This tax bill describes, among other things, the value of your home. The value of your home is determined by the municipality and is called the WOZ value. This WOZ value is established by means of an automatic process of a computer program. This automated process does not always take into account the prevailing circumstances, as a result of which the value is set too low. On this page we discuss a valuation that is too low, what the consequences are and how we can solve this for you by increasing your WOZ value.
The calculation of a WOZ value
As mentioned, the WOZ value is calculated by a very complex computer program. This program uses various elements such as the size of your home and where your home is located to determine the WOZ value of your home. The program also looks at comparable homes that have recently been sold. We call these reference homes. Unfortunately, these homes often differ enormously and are difficult to compare. When determining the value on the basis of a computer program, it therefore regularly happens that the value is determined incorrectly. This is usually because the reference homes are not sufficiently comparable or because other factors have not been sufficiently taken into account. Would you like to read more about how the WOZ value of your home is determined? Then click here.
Preparing for the future
The WOZ value is important in the Netherlands for tax purposes. However, the WOZ value is often also a starting point for potential buyers of your home. If your home is offered for sale, the WOZ value is a good starting point to make an offer. However, because the objection process can take some time, it is only smart to submit an objection for a higher WOZ value if you can wait for the decision of the municipality. If you only want to sell your home in the future, for example the following year, you can already object so that the value increases. You will then have to pay a higher tax, but these costs do not outweigh a potentially higher sales price of your home.
Mortgage interest and the WOZ value
If a mortgage lender provides a mortgage for a home, you must pay interest. This interest consists of a base rate and a risk surcharge. If the market value of your home is higher than the amount of the mortgage, banks generally charge a lower interest rate for a mortgage. On an annual basis, a lower interest rate on your mortgage loan results in major savings. Most mortgage lenders use, among other things, the WOZ value as substantiation for the market value of the home. You can contact us to find out whether increasing the WOZ value actually results in savings.