What is a house worth? How to make your own estimate

A house is worth roughly what comparable homes nearby have recently sold for, adjusted for differences in floor area, plot, maintenance and location. So for your offer you do not need a figure to the euro, but a range you can justify, in which you can place the asking price.

Then set your own maximum separately. What a house is worth and what you are willing to pay are two different things.

Find comparable sales

Koopsominformatie from the Land Registry (Kadaster) shows prices actually achieved. Look for homes that resemble the one you want to buy. Note the characteristics of each property alongside its sale price. The amount on its own does not tell you how useful that sale is for your comparison.

Compare type, floor area, plot, year of construction, maintenance, extensions and location. The larger the differences, the less a single sale price tells you.

Do not use an average without explaining it

Three homes sold for €410,000, €438,000 and €455,000. Their average is about €434,000, and that is still not what your house is worth.

The most expensive one may have an extension. The cheapest may need roof repairs. Work out which differences explain the prices before you use them.

Watch for the things that cost money and space

Floor area, foundations, roof, window frames and energy performance are judged differently from paint and furnishing. And a new kitchen does not appeal to every buyer.

If you have doubts about the roof or the foundations, for instance, have someone establish what is going on and what putting it right would cost. Set that estimate alongside the sale prices you have found. Your comparison then covers the work you will still have done after the purchase as well.

The WOZ value and online tools are supplementary

The WOZ value uses a different reference date and serves a different purpose than a purchase today. An online estimate does not know all the detail of maintenance and workmanship.

Put the WOZ value and the online estimate next to your own comparison. Where an amount differs, look at which characteristics and which reference date it rests on. For financing, the lender will usually require a suitable valuation.

Write down the value and your maximum separately

Note your range with the sales and the differences next to it. Then decide how much you want to pay yourself, based on the monthly payment, renovation costs and the buffer you want to keep.

If your offer goes above your mortgage, you need money of your own. The next step is in how much to bid on a house.

What to do now

• look up the sale prices of comparable homes at the Kadaster, not the asking prices
• correct for the differences that weigh heavily: floor area, plot, extensions and location
• write down your range with the reasoning next to it, so you can explain it