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Which appraiser in the Dominican Republic will commission a valuation?

In most cases, a valuation report is needed because the bank needs it to start a financing application. If you are not dependent on a bank or other financial institution when purchasing real estate in the Dominican Republic, a valuation report is useful if you want to make an offer on a property or other investments.

What does an appraiser do?

An appraiser creates a report that states the value of the property.

What do I need a valuation for?

You can use a valuation to estimate whether the selling price of a home is real or not. To get the mortgage you need a valuation report in almost all cases. The maximum amount of the mortgage does not only depend on your income, but also on the value of your home. If you work and live in the Dominican Republic, most local banks finance up to 100% of the market value of your home. If you live abroad, banks usually finance a maximum of 70% of the market value.

Tip: if you are going to buy an existing home in the Dominican Republic, it is often wise to have not only a valuation but also a structural inspection carried out. When having a structural inspection carried out, all defects of the property come to the surface. In the architectural report, a list of the defects is given and the repair costs that are attached to them.

What should you look out for when hiring an appraiser in the Dominican Republic?

The appraiser should not be your buying agent or the seller's broker. Furthermore, it is important that the appraiser is recognized by the institution for which you need the report.

Each lender can set its own requirements for the valuation. Before you call an appraiser, ask your mortgage lender what requirements the appraisal must meet. This way you can be sure that the mortgage lender will accept your valuation report.

Examples of requirements in the Dominican Republic

For example, banks in the Dominican Republic may have the following requirements:

  • Usually, the appraisal report should not be older than 6 months on the date of the binding offer for the mortgage.
  • The report must have been drawn up by an appraiser accepted by the bank (at any bank in the Dominican Republic you can request a list, usually with about 10 appraisers listed)

What does a valuation report cost?

The cost of a valuation report in the Dominican Republic is in most cases a percentage of the appraised value plus tax.

Tip: ask in advance for price and any additional costs. If you request the rates from several appraisers, check carefully whether all associated costs are included and whether the appraiser meets the requirements of the mortgage bank.

Valuation for seller, a good alternative

If you are planning to sell your home or other property in the Dominican Republic, a valuation is a cheap way to determine an asking price.

Indicate what you need the valuation for

Indicate to the appraiser what you need the valuation for. For example:

  • New mortgage. Tell the appraiser what value you need to get the mortgage. If you buy an apartment, the appraiser must check whether the Association of Owners sets aside sufficient money for major maintenance as included in the articles of association (in most cases at least 0.5% of the rebuilding value).
  • Existing mortgage. With a valuation report you can prove that your home has become more valuable. As a result, you may be able to reduce your interest rate. A valuation is not always necessary for this; many banks also accept the value that the tax authorities assign to the property. Does the bank not equate the value determined by the tax authorities with the sales value of the property? Then it is wise to still have a valuation made.
  • You are going to renovate and because of this you want to take out a higher mortgage. Discuss your plans and the renovation costs with the appraiser, who can determine the value of the home after renovation. With that higher value, you can also get a higher mortgage (provided that your income is also sufficient for that). Then ask the appraiser if he can include the rebuilding value in the valuation.
  • Indication for the selling price of your house, settlement of a death or objection to the value determined by the tax.

Estimating home value

If you have a home in mind in a popular neighborhood where sometimes the price is higher than regular prices in the area, ask a real estate agent if he can urgently determine the value for the home. Then you will know what the value of the home is before the legal cooling-off period has expired. You can also include a required outcome of valuation in the resolutive terms of the purchase contract. You can then cancel the purchase without penalty if the house turns out to be less worthy.

Are you looking for an appraiser or structural engineer in the Dominican Republic? We have years of experience with almost all financial institutions and service providers in the Dominican Republic and are happy to put you in touch with the most suitable parties for you. REMAX has a national network of recognized appraisers, each specialized in a different region or type of real estate.

Would you like to have a valuation report drawn up? Please contact us!