I’ve been looking at properties in Madrid recently, and just when I found a piso I liked and was ready to discuss a mortgage with the bank, I got stuck on one word: Tasación. Both the real estate agent and the bank advisor kept mentioning it as an essential step for getting a loan. After some research, I’ve finally figured it out. I’m sharing my findings on Spanish property appraisal here, partly as a personal record and to help others avoid the same pitfalls.
Simply put, 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 here 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 an appraisal report.
How Much Does an Appraisal Cost?
This cost is covered by the buyer, and the price isn’t fixed. Depending on the property’s type and value, the fee typically ranges from €250 to €600. My small apartment ended up costing just over €300. It stings a bit, but it’s an unavoidable expense. Some banks might run promotions for [Spanish property valuation] and offer to cover this fee, but as they say, there’s no such thing as a free lunch. It’s always best to carefully review the overall loan conditions before deciding.
Appraised Value vs. Purchase Price: Which One Matters More?
This is the most crucial point regarding the Spanish bank appraisal! The bank’s appraised value and your agreed-upon purchase price are often different! When approving a mortgage, the bank will typically calculate the loan amount based on the lower of these two figures, usually financing 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 only 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.
Understanding these two concepts is crucial 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 benchmark for calculating the loan. |
| Purchase Price | The final price you and the seller agree upon, which is stated in the purchase 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 bumpy experience helps everyone out! For those who’ve gone through this, was there a big difference between your appraisal value and the purchase price? Feel free to share in the comments below!
