What is a home appraisal and why is it important?
A real estate appraisal is a technical report that determines the market value of a property based on its characteristics and the environment in which it is located. It is an essential document to sell a property, apply for a mortgage or make a patrimonial declaration.
What is a real estate appraisal for?
The main uses of a home appraisal are:
- Sale of the propertyKnowing the market value allows you to set a competitive price and attract buyers.
- Mortgage ApplicationBanks require an official appraisal to determine the maximum amount they can finance.
- Division of inheritance or divorceIn cases of division of assets, an appraisal allows to establish a fair value.
Tax valuationIn patrimonial declarations or to calculate taxes such as ITP or municipal capital gains.
Factors influencing the value of a home
The price of a house depends not only on its size or location, but also on multiple factors such as:
- LocationThe neighborhood, the city and the proximity to basic services influence the value.
- Area and distributionThe built and usable square meters are key.
- State of conservationA renovated house can increase its value up to 20%.
- Extras and qualitiesElevator, garage, swimming pool, terraces or luxury finishes can make the difference.
Market demandSupply and demand in the area directly affect the final price.
How to calculate the appraised value of a home
The appraisal process follows specific methodologies to calculate the real value of a property.
Real estate appraisal methods
There are several methods to appraise a home, the most common are:
- Comparison methodThe property is compared with similar properties in the same area. This is the most commonly used method for residential properties.
- Cost method: The price of building the house from scratch is calculated and depreciation is subtracted.
- Rent capitalization methodUsed for rented properties, based on the income generated by the property.
- Residual methodUsed for land or properties to be renovated, estimating the final value after rehabilitation.
How to find out the appraisal price of a home
To estimate the appraised value without hiring an appraiser, you can:
- Consult the cadastral reference value at the electronic headquarters of the Cadastre.
- Review real estate portals and compare prices of similar homes in the area.
- Use online valuation tools, although their accuracy is limited.
How to perform a home appraisal step by step
Documentation required to appraise a home
For an official appraisal, it is essential to present:
- Title deed or simple note from the Land Registry.
- Certificate of occupancy and energy efficiency certificate.
- IBI receipt to verify the cadastral reference.
- Plans of the propertyif available.
Who can perform an official appraisal?
Official appraisals must be performed by appraisal companies approved by the Bank of Spain. Bank of Spain. These appraisals are necessary for mortgage transactions or legal proceedings.
Common mistakes when appraising a property
- Overpricing the propertyAn excessive price can prolong the sale indefinitely.
- Not considering the current marketDemand and supply are constantly changing.
- Rely only on online ratingsThese tools are for guidance only and have no official validity.
How to appraise a house for sale
Differences between official appraisal and online valuation
- Official appraisalMade by an approved expert, it is valid for banks and official organizations.
- Online valuationUses algorithms based on market data, but without physical inspection.
How to appraise an apartment for sale and set the best price
To determine the ideal selling price, it is advisable:
- Analyze the average price per square meter in the area.
- Compare with similar properties in real estate portals.
- Adjust the price according to the condition of the property and its state of conservation.
How to appraise other types of properties
Land and farm appraisals require specific methods.
How to appraise a farm: Keys to appraise rural land
The value of a rural property depends on factors such as:
- Total area and land use (agriculture, livestock, forestry).
- Available infrastructure (roads, irrigation, buildings).
- Location and accessibility.
How to appraise a field: Aspects to take into account
In the case of agricultural land, they are evaluated:
- Type of crop and productivity.
- Water availability and irrigation rights.
- Possibility of exploitation or urban development.
The importance of an accurate appraisal in the real estate market
A well-done appraisal is key to sell a property at the best price, obtain an adequate mortgage or carry out legal procedures without inconveniences. Having experts in real estate appraisal guarantees that the valuation is objective, accurate and in accordance with the real market conditions.
If you are looking to sell or buy a property in Marbellaat Decoluxe Real Estate we offer you professional advice and access to the best specialists in valuations. Contact us and find out how much your property is really worth.
