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The property valuation market

The property valuation market. Unbalanced market relationship between: Lenders Intermediaries Property valuers Government Consumers. Why a Netherlands Institute for Residential Property Valuation (NWWI)?. Valuation was a formality for lenders and provided no assurance

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The property valuation market

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  1. The property valuation market • Unbalanced market relationship between: • Lenders • Intermediaries • Property valuers • Government • Consumers

  2. Why a Netherlands Institute forResidential Property Valuation(NWWI)? • Valuation was a formality for lenders and provided no assurance • Valuation was a necessary evil for consumers • Valuation provided additional income for intermediaries • Valuation was a commercial product for smart entrepreneurs • Valuation was bad for the image of estate agents(fraud) and loss-making

  3. Production and marketing chainfinancing valuations Production and marketing chain Does the added value increase per segment? Bank/Customer € 500 Purchasing organisation 25% Intermediary 15% Valuation organisation 15% Property valuers € 200

  4. What is the NWWI • Partnership of sector organisations • Supported by politicians and financial institutions • High-quality valuation product • Cooperation with expert local property valuers • Efficient ICT infrastructure • Non-profit

  5. What does the NWWI offer? • Increased reliability • Validation of appraised values • Validation of property valuers • Differentiated valuation products • Model-based valuation in support of full-service appraisal • Realistic services at reasonable rates • Transparent and efficient process • Uniform, digital and checked • Central registration of valuation reports and assignments • Scope for local cooperation • Possibilities for exerting influence severely restricted • Product development

  6. What does it provide for the financial market? • Reduced risk of fraud • Efficient and fast process • Customised information • Respect for the intermediary's commercial interests • Greater clarity about status throughout the process • Transparency • Duty of care to consumer

  7. What does it offer consumers? • Assurance • Better quality • Value for money • Customised information • Report with substantiation and property valuer's explanation • Cost € 60 (excluding VAT)

  8. What does it offer property valuers? • Prospects for the property valuer's future • Process innovation • Preservation of own/local partnerships • Increased objectivity and reliability • Efficiency improvements in the process

  9. How does the NWWI work • The client engages a property valuer • directly or through an intermediary • The engagement between the property valuer and client is • laid down in writing • (price agreement and validation of engagement) • Intermediary, consumer or property valuer registers engagement on www.nwwi.nl • Property valuer carries out the assignment and submits a digital report to the NWWI for validation • The NWWI validates the report and sends it to the client, the party that arranged the engagement and the lender • The property valuer invoices the client and sends the invoice, together with the paper report if required, to the client

  10. Current state of affairs Started on 1 July 2009 More than 2000 property valuers have joined Financiers make NWWI compulsory for mortgage Government is tightening the rules and using the NWWI method of working as the benchmark 25,000 valuations (25% of the market) in first year An anticipated 80,000 valuations in the third year

  11. Prospects • A new balance • between • Lenders • Intermediaries • Property valuers • Government • Consumer

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