appraisal
Also called: taksasi, penilaian agunan
A bank appraiser's assessment of a home's price to determine the mortgage ceiling.
What it means
An appraisal is a formal assessment of a property's market value by an independent appraiser. In the context of a mortgage, the bank uses the appraisal result to ensure the collateral value truly matches the loan requested. Appraisers usually look at location, size, building condition, and nearby transaction prices. The result is a fair value figure that becomes the basis for the bank to calculate the credit ceiling.
Why it matters for families
The appraisal value determines how large a mortgage the bank can approve. If the appraised value is lower than the selling price, the family must add to the down payment out of their own pocket. Many buyers are surprised because they had prepared a 15 percent down payment, but the bank only finances 80 percent of the appraised value, not of the transaction price. Misunderstanding this can make a home-buying plan fail at the last minute.
Example
For example, a house costs Rp600 million and the family prepares a Rp90 million down payment. If the bank appraises the house at only Rp540 million and finances 80 percent, the ceiling is only Rp432 million. The Rp78 million shortfall must be covered on their own, not Rp90 million as initially estimated.
Common misunderstanding
Many people think the appraisal value is always the same as the selling price. In reality, the appraiser can set a lower figure, and the bank uses the appraiser's figure, not the price in the brochure.