The valuation of a property is an essential process in real estate, which arouses curiosity and, sometimes, concerns in those involved in buying or selling properties in Spain. In formal terms, the valuation is the objective appraisal of the property. It sets the actual value of the property in the market. In some cases, it is mandatory, but in others, it is only of informative interest in a constantly evolving market, such as real estate.
Learning the details and concepts of it can make all the difference in making informed and appropriate decisions. In this article, we explore the key aspects you should consider when valuing a house in Spain, from the types of valuation to the factors that influence it.
Types of property valuations
There are two types of real estate appraisal: official and unofficial. Their goal, cost and validity may be different.
Official valuation
Organizations approved by the Bank of Spain by criteria established by law are who make it. A mortgage appraisal is a requirement of the banks to calculate the loan. However, they are usually demanded in case of inheritance or separation. The party that requests this type of valuation is who pays, and their cost is between €300 and €400. Their validity lasts six months.
Unofficial appraisal
In this case, a real estate agent can make the valuation, or you can even get it done online. Called "real estate appraisals", they are generally free. They do not have legal validity, though. The property buyer can request it to confirm that its price adjusts to the real estate market. Meanwhile, the seller would use it to set a reasonable sale price.
What gets checked in a property valuation
Regardless of the aim of its requirement, the valuation assesses a series of essential aspects:
Housing location
The location of the home is the first factor that influences the appraisal. Cities, neighbourhoods and even streets may have different prices. Specific aspects also come into play in the calculation, such as amenities in the area, road connections, public transport, etc.
Type of housing and situation
Apartments and single-family houses are not valued the same. The latter, generally, have more value. Regarding flats and apartments, their location in the building is also essential: floor or height, orientation and views, among other issues. For example, brighter, south-facing homes get more value.
Housing characteristics
In this section, first of all, space and distribution are fundamental. For example, large corridors decrease value. Other significant aspects are the quality of materials and finishes, maintenance and energy efficiency.
Building
In the case of high-rise homes, elements such as an elevator, storage room, parking space or common areas increase the property value. The age of the construction also influences the appraisal. Therefore, older houses are worth less than newly built ones.
Registration and official situation
It is an important aspect. It refers to housing charges that may lower its value. Besides, it considers circumstances such as urban plans that may affect the area, whether it is subsidized or not or whether the information from the Cadastre and the Land Registry matches the reality.
Mandatory or not, the property valuation allows you to determine if the sale price adjusts to the market. Particularly in a constantly evolving market, as you can see in our statistics pages.
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