Property valuations in Spain can be carried out by different experts, but they are largely done by surveyors specialised in in this field. Professional surveyors usually hold qualifications in architecture, engineering or technical architecture and, after obtaining their degree, have then done specific training in property valuation.
In our country, property valuation is regulated by law, so it must comply with legal regulations and be carried out following an approved methodology. Likewise, it must be performed by a professional included on the Bank of Spain’s Surveyors Register.
When making an appraisal, the surveyor will assess different aspects of the property itself, such as its location, the year of construction, the neighbourhood, its state of conservation, its characteristics and, of course, supply and demand.
Although the appraisal is carried out by an approved professional, it is also supervised by what we call appraisal companies (sociedades de tasación), which are regulated by the Bank of Spain. Their function is to evaluate and corroborate the valuation carried out by the surveyor.
In order for a company to be legally considered as an appraisal company and appear in the Official Register of Appraisal Companies, it must meet the requirements set by the Bank of Spain and regulated by Royal Decree 775/1997 of 30 May 1997, whereby it must fulfil the following requirements:
- Have at least 10 employees.
- Be incorporated as a public limited company.
- Engage solely in the valuation of assets, estates or companies.
- Be domiciled in Spain.
- Fulfil its civil liability.
- Have 3 professional experts on the Board of Directors.
- Have sufficient capital to issue shares in the name of the holder.
How is a property valuation carried out?
There are many reasons why you may at some time need to accurately know the value of a property in the real estate market, one of which is at the time of purchase. Therefore, it is important to have the report of a certified surveyor whose findings can guide home buyers and sellers in the buying and selling process.
To commission a valuation, the first thing to do is to contact an appraisal company, which will have suitably qualified, registered professionals on its staff to carry out the appraisal. After contacting the company, the surveyor assigned to carry out the valuation will obtain an extract of the property record or nota simple from the Land Registry which will show the details of the property. Once this extract is obtained, the surveyor will go to the property to measure it and carry out other checks to ensure that what is stated in the title deeds actually corresponds to what is there. In addition to these measurements, when determining the value of the property, the surveyor will also take other aspects into consideration.
Factors affecting the value of a property
The geographical location of the property is one of the aspects that determines its real price, which is why the conditions of the neighbourhood in which it is located can increase or decrease the value of the property. Other factors considered include whether the area has basic services such as schools, supermarkets, parks, health centres or shops.
Nowadays, the energy efficiency of a home is fundamental in determining its value, not only because the impact it has on the environment depends on this, but also because it can lead to significant financial savings. Since 2013, when selling or letting a property it has been compulsory to provide an energy efficiency performance certificate. These certifications rate the property on a scale from A to G, with A being the maximum rating, obtained by the most energy-efficient homes, and G being the one with the lowest energy savings and therefore the highest energy consumption.
A property with an A energy efficiency rating will have a much higher market value than a similar one with an energy efficiency rating at the lower end of the scale.
When we talk about maintenance, we refer to the upkeep of the property in comparison with others in the same geographical location. In this section, the surveyor will study the state of conservation of the property and will take into account whether any renovations have been carried out recently.
Another aspect that surveyors take into account when determining the value of a property is the number of bedrooms and bathrooms and how they are distributed throughout the property. In fact, the surveyor will draw up a plan of the property specifying how it is laid out.
When constructing or refurbishing a building, the materials used must be taken into account, as they also determine the quality of the property. A factor that can tip the price of the property up or down is whether it is soundproofed, whether it has a lift and the communal areas such as gardens, tennis courts or a community or private swimming pool.
The valuation establishes the price of a property for a specific period, as it determines its market value at a specific point in time. But remember that the real estate market, like all economic markets, does fluctuate and sometimes quite substantially, therefore a valuation report will have a limited validity period.
If you are looking to purchase a property in Spain, take a look at the extensive range of homes listed on our website. Breezom can help you arrange a valuation as well as taking care of all the other paperwork that may be required during the buying process.