I’ve been looking at properties in Madrid recently and found a piso I love. As I started talking to banks about a mortgage, I kept getting stuck on one word: Tasación. Both the real estate agent and the bank advisor mentioned it repeatedly, stressing it’s an essential step for getting a loan. After doing some research, I’ve finally got my head around it, so I’m sharing what I’ve learned here as a personal note and to help others avoid potential pitfalls.
In simple terms, a Tasación is a professional property valuation that the bank requires from an independent, certified appraisal company to determine how much money they can lend you. The key point is that this company is independent of the bank, and the appraiser is regulated by the Bank of Spain, ensuring the result is as objective and fair as possible. They will conduct an on-site inspection of the property, considering factors like location, age, condition, size, and nearby amenities, before issuing a [Spanish property appraisal] report.
How Much Does an Appraisal Cost?
This fee is paid by the buyer, and the price isn’t fixed. Depending on the type and value of the property, the cost typically ranges from €250 to €600. The appraisal for my small apartment ended up costing over €300. While it stung the wallet a bit, it’s an unavoidable expense. Some banks might run promotions offering to cover this cost, but as they say, there’s no such thing as a free lunch. It’s always best to carefully review the overall loan conditions and information on [Spanish property valuation] before deciding.
Appraisal Value vs. Purchase Price: Which Matters More?
This is the crucial part! The bank’s appraisal value and your purchase price are very likely to be different! When the bank approves your mortgage, they will typically calculate the loan amount based on the lower of these two figures, usually lending up to 80% of it. For example, if the house you want is being sold for €200,000, but the bank appraises it at only €190,000, the bank will lend you a maximum of 80% of €190,000, which is €152,000—not 80% of €200,000. This means you’ll need to come up with a larger down payment, making an understanding of the [Spanish bank appraisal] process key.
Understanding these two concepts is essential for accurately calculating your budget. I’ve made a simple table to help clarify:
| Term | Explanation |
|---|
| Bank Appraisal Value | The objective property value determined by the appraisal company, used as a basis for loan calculation. |
| Purchase Price | The final price you and the seller agree upon, which is stated in the contract. |
When applying for a mortgage in Spain, the Tasación is a core and unavoidable step. Its outcome directly determines your maximum loan amount. I hope sharing my experience from learning the hard way helps everyone! For those who have gone through this, was there a big difference between your appraisal value and the purchase price? Feel free to share in the comments below!
