How an online valuation calculator works

We explain how a calculator works, the benefits of using one, and how it can help you when buying a new house.

The valuation of an apartment, or property valuation, is the process whereby a valuer authorized by the Bank of Spain determines the value of a given residence or property in the market. In addition to other requirements, for the appraisal to be valid, the appraiser must visit the house in person. However, using an online valuation calculator can be a very useful preliminary tool that helps us to know the price according to neighborhood, and even allows us to make initial calculations for a purchase.

The documents resulting from the appraisal are not only mandatory when applying for a mortgage at a bank, but also extremely important for two main reasons. The first of these is that the bank insures the value of the property in the real estate market. This guarantees the bank that, in the event of the mortgagor's default, the debt can be covered. Secondly, the valuation is used to establish the amount of financing that the bank will grant. Generally, this is 80% of the value of the valuation.

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Let's take a look at an example to understand this second function of a house appraisal. Let's suppose that the sales value of the apartment that we want to acquire is €100,000 and its appraised value is €80,000. As we explained above, the bank finances up to 80% of the appraised value, which in this case is €80,000. Therefore, the bank would issue a mortgage of €64,000. If, as in this case, the appraised value is lower than the sales values, the potential buyer would need to have savings to cover the remaining amount. However, this difference can also be used to negotiate and potentially lower the sales price so that it matches the value obtained by the appraiser.

BBVA Valora

BBVA Valor gives you the approximate price of a property using information on its taxable value (which is based on its location, floor space, year of construction and certain characteristics of the property itself), as well as based on similar properties for sale in the nearby area. This is an approximate value that can never substitute an appraisal.

To use this feature, simply go to BBVA Valora and click "Analyze a property". If you are not a BBVA customer, you can analyze up to six different houses. If you are a BBVA customer, you can analyze as many properties as you wish with unlimited searches.

To analyze the estimated price of the home, just enter the full address: province, town/city, road, number, entrance, stairway, floor, door. After entering this information, you will see all the information related to the house used to obtain an estimated appraised value.

After analyzing the property and obtaining its approximate value, BBVA Valora also provides information about the surrounding neighborhood of the house. You can obtain information about four principal aspects when moving to a new neighborhood:

  • How many homes there are in the area and information on their price, surface area and features.
  • Number of homes that are for sale as a proportion of the total. This is an important factor because the higher the number of houses there are on sale, the easier it is for the buyer to negotiate the buying price.
  • Historical performance of the estimated selling price per square meter.
  • Types of properties that in the area.

To obtain all the key information about the new area, simply click "Analyze a neighborhood". A map will appear with a search bar at the top, where you can enter the address and the radius you would like to search. In just a few seconds, you will see all the real estate listings and also your negotiating power based on the number of apartments available and the total housing stock in the neighborhood.

Lastly, you can use BBVA Valora to perform calculations. Thanks to the integrated calculators and simulators, you can:

  • Choose the mortgage that best matches your budget and your financial capacity.
  • Discover the impact that purchasing the home will have on your finances in different scenarios.
  • Know approximately what costs are associated with the purchase and the mortgage.

To use this feature, simply click "Do the numbers". Next, enter your monthly net income, the city where the property is located, its price, the amount of money you need from the bank, and the number of years over which you want to pay off the mortgage. After entering all this information into the tool, your monthly mortgage payment will be displayed. In addition, the calculator provides information about the amount you would have to pay in the future if the Euribor rate increased by 3% and if your monthly income fell 30% below your current income.

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View BBVA Valora app

You also have at your disposal BBVA Valora View, an application for mobile devices that helps you to search for a property, offering you useful information. For example, using an intelligent map that shows you the prices in different areas, so that you know which ones are closest to your budget. You also have the possibility of pointing your phone's camera at any home to find out its approximate price. That information is determined based on the home's cadastral value and offers made on similar homes in the area. The app is available for customers and non-customers of BBVA.
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