Soon, several envelopes will fall on the mat again for taxes and fees. Many times the WOZ value comes up to determine those taxes, but what is the difference between the WOZ value and assessed value? In this blog post, we are happy to explain it for you!
What is a WOZ value?
A WOZ value (waardering Onroerende Zaken) is the value of a home in the Netherlands, and is determined by the Dutch government. The WOZ value is a tax-related value and is used to calculate how much tax you have to pay on your home. This means that if your home has a high WOZ value, it may result in higher taxes.
The WOZ value is determined each year by the municipality, based on market values, information from real estate agents, local knowledge and other factors. The municipality compares similar homes in the area to determine an estimated market price for your home. This estimated market price then becomes the WOZ value of your home for that year. It is important to note that this estimated market price may differ from what you paid for your home or what it would sell for today.
What is an appraisal value?
An appraisal value or professional assessment of a home is usually performed by an independent appraiser when applying for a loan from a bank or buying insurance coverage. A professional appraiser inspects the condition of your home, takes into account features such as size and location, analyzes comparable properties in the area and gives an opinion on the current market value. Unlike the WOZ value, which can change annually, an appraisal report should more accurately reflect what potential buyers are willing to pay for it at any given time.
Difference between WOZ value & assessed value
The main difference between these two values lies in their purpose: while the WOZ value serves only as a basis for tax purposes, an appraisal report provides more detailed information about current market trends and can be used for both tax and financing purposes, depending on your needs. Another important difference lies in the way they are determined: while municipalities use various factors to estimate the value of a property as part of the annual tax calculation, appraisers conduct thorough inspections before giving their opinion on the current market value, which is usually more accurate than estimates from municipalities alone because of their expertise in analyzing comparable properties in detail.
How do I file an objection about the amount of the WOZ value?
As a first step, it is a good idea to check whether your WOZ value is actually too high. You can easily determine this yourself by paying attention to a number of factors, such as the value of your neighbors. You could also request information about the purchase price from the land registry, for example. This way you can clearly substantiate why you think the WOZ value is too high.
The second step is to fill out the objection form. You will need to provide information about your property, such as its address, size and type. You should also explain why you think the assessed value is too high. This form or instructions are usually included in the letter of assessment. If not, you can usually find it on your municipality's site.
The third step is to submit your objection form to your municipality. You should attach any supporting documents, such as appraisals or comparables. Processing the application can often take a long time, allow for several weeks to months before you receive a response.
Your municipality will review your appeal and decide whether or not to lower the WOZ value of your property. If they lower the value, your taxes will be reduced accordingly.