Hola a todos! I’ve been running around endlessly trying to buy a house recently, and after preparing a mountain of paperwork, I got stuck on something called a Tasación. I’m sure many of you who are also planning to get a mortgage to buy a home have heard this term, but what exactly is it, and how does it affect our home-buying plans? Today, I’m sharing the research I’ve done, hoping it can help everyone.
What is a Tasación and Why is it So Important?
Simply put, a Tasación is a property valuation conducted by an independent, officially certified appraiser appointed by the bank. This appraisal report is crucial for the bank because they use this value to determine the property’s true worth, which in turn decides whether they will grant you a loan and for how much. Remember this key point: the bank will typically only lend you 80% of the lower of the two values: the purchase price or the appraisal value.
The Appraisal Process and Influencing Factors
The appraiser will visit the property in person, inspecting it inside and out like a detective. They consider many factors, such as the property’s location, floor level, orientation, year of construction, usable floor area, maintenance condition, energy efficiency rating, and even the sale prices of similar nearby properties. They will issue a very detailed official report, and you can learn about the property appraisal timeline and the Spanish property appraisal fees. This report is typically valid for 6 months, so once you have it, you need to move quickly with the next steps!
What if the Appraisal Value and Purchase Price Don’t Match?
This is the most frustrating scenario, especially when the appraisal value is much lower than the purchase price you agreed on with the seller. Let’s look at a table to understand it better:
| Scenario | Purchase Price | Appraisal Value | Bank Loan Base | 80% Loan Amount | Your Down Payment Shortfall |
|---|
| Ideal Scenario | 250,000€ | 260,000€ | 250,000€ | 200,000€ | 50,000€ + taxes & fees |
| Worst-case scenario | 250,000€ | 220,000€ | 220,000€ | 176,000€ | 74,000€ + taxes & fees |
See the difference? If the appraisal is low, the bank is willing to lend you less money, which means the down payment you have to cover out of pocket increases significantly! If this happens, you can try to renegotiate the price with the seller, apply for a mortgage with a different bank, or, if the financial gap is too large, you might have to walk away from the property.
The Tasación is an unpredictable but unavoidable step in the mortgage process. A good tip is to try and add a clause to your preliminary contract (arras), stating something like, ‘If the bank appraisal value is lower than the purchase price by a certain percentage, the buyer has the right to cancel the contract without penalty and have their deposit returned.’ Have you encountered any pitfalls with appraisal values during your home-buying journey? Feel free to share your experiences in the comments below!
