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.
An appraiser creates a report that states the value of the property.
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.
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.
For example, banks in the Dominican Republic may have the following requirements:
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.
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 to the appraiser what you need the valuation for. For example:
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!