If you want to know the real value of a property, it is not enough to study the offers of real estate agencies. It is also not enough to conduct your own market research based on prices in the area being studied, since they are often distorted and do not correspond to the real situation: for sellers they are higher, and for buyers they are lower.
The real market value of real estate is determined by an expert assessment of the property, which is performed by an authorized person, whose purpose is to establish minimum and maximum values based on annual data from the National Institute of Statistics in order to determine the value of real estate in accordance with the current political-economic situation and demand for real estate.
As a result of these calculations, the TOTAL REAL VALUE of the property will be established. In addition, based on the data obtained, the amount of the annual property tax is determined, which depends on the established cadastral value.
VALUATION OF HOUSING (REAL ESTATE)
WHAT IS THIS ?
Real estate valuation — this is an official document issued by a technician or company, which records the cost of the specified object. The appraisal, the purpose of which is the registration of a mortgage, is regulated by the Bank of Spain in accordance with the norm ECO/805/2003, which requires the fulfillment of a number of conditions in order for the assessment to be certified and confirmed by the competent authority.
CONVENTIONAL OR EXPERT ASSESSMENT ?
There are two types of real estate valuation — CONVENTIONAL (ESTIMATION) and EXPERT (EVALUATE). What's the difference?
- CONVENTIONAL (ESTIMATION) does not require the participation of a qualified specialist and simply determines the value of the property. It is not regulated in any way, is not confirmed by banks or any other official bodies, and has no legal force. It is carried out for market research, for informational purposes and it costs less.
- EXPERT (EVALUATE) is a legal action that establishes and officially confirms the value of a property and can only be performed by a qualified technician. In addition, it is based on methodologies clearly established on the basis of existing properties of a similar typology. It is produced to establish the official value, for economic and legal purposes and is more expensive than a regular assessment.