How much does it cost to value an apartment?

The property's location, travel to the site, whether the appraiser needs to gather further information, etc. Many factors affect the final cost.

A property appraisal is a process used to determine the value of a property on the market performed by an appraiser authorized by the Bank of Spain. The documents resulting from the appraisal are essential for buying an apartment because the amount of financing offered by the bank depends on the appraised value. Therefore, this is not just a mandatory procedure but a crucial step in obtaining a mortgage.

Appraising an apartment has two primary functions: Firstly, the banking institution ensures the real value of the property in the real estate market. This ensures the bank that it can cover the debt in the event of default of payment by the mortgage customer if the property has been mortgaged. Secondly, appraisals are used to set the amount of financing that the bank will grant. In general, the amount of financing is usually up to 80% of the appraised value. If the mortgage involved is for a secondary residence, this percentage tends to be somewhat lower.

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Factors that affect the appraised value and required documentation

Determining how much it costs to appraise an apartment is a somewhat complicated process as the law does not regulate the purchase and sale price.

Appraisals carried out by certified appraisers usually fall within a price range. The factors that influence the final appraised value include:

  • The location of the property: appraising an apartment in Madrid is not the same as in a village.
  • If the appraiser needs to compile extra information such as land registry certificates and plans.

It is essential that we know which documents to submit to have an appraisal. Providing all the required documentation, so that the appraiser does not have to look for it, can help to save on costs. However, it is advisable that you confirm this with the appraiser that is going to value/appraise your property.

It is advisable to have the following documents at hand:

  • The property deed.
  • The property blueprints.
  • If the building is under construction, a photocopy of the building permit and the project approved by the corresponding professional association and city council.
  • If the property is built on developable land, the city/town planning certificate or written consultation, and the land registry plan or plat.
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Official property appraisal process

People interested in applying for a mortgage can also choose the appraiser. However, the appraiser must be certified. Appraisers must obtain and retain their official certified status granted by the Bank of Spain. Only appraisals carried out by certified appraisers will be accepted by a bank before granting a mortgage.

Six witnesses must be attached to the appraisal document (reference valuations of properties of similar characteristics in the same area).

However, there is not just one appraisal method. As long as these requirements are fulfilled, appraisals can be carried out in four different ways:

  • Comparative method: This method consists in comparing the property under appraisal with other properties of similar characteristics. This is the most commonly used method.
  • Residual method: This method is used when there is a lack of similar properties to the home that is under appraisal. It consists in taking the value of the property with its finished construction and subtracting the expenses that have been invested to complete the building.
  • Profit method: This is the most frequently used method to appraise properties capable of producing revenue, surface rights, administrative licenses, easements, usufructs, installment purchase agreements, etc. Cost method: This method consists in calculating the replacement cost of the property that is being appraised.

BBVA Valora

Appraising the apartment that we want to buy is a mandatory requirement demanded by all banks to grant a mortgage.  However, if you want to get a first idea of the value of the property so you can start doing some calculation, we offer you the BBVA Valora tool.

Use the BBVA Valora tool available at bbva.es to quickly obtain the estimated purchase value of a property, characteristics of the neighborhood, a price comparison of houses on sale in the area, and a rough estimate of costs.

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