Hola everyone! I’ve been house-hunting in Madrid recently and am preparing to apply for a mortgage. The bank manager kept mentioning one word: Tasación. I didn’t pay much attention at first, but after doing some research, I realized it’s a crucial part of the mortgage application process. I noticed there aren’t many posts about this on the forum, so I’ve compiled my findings to help others who are going through the same process.
What is a Property Appraisal?
Simply put, a property appraisal is an official valuation of a property’s worth conducted by a professional appraiser. If you need to apply for a bank loan to buy a home, this appraisal report is mandatory. The bank will use the lower of the two values—the appraisal value or the purchase price—to determine how much money they will lend you. Therefore, the appraisal value directly affects the amount of the loan you can secure. Similar to other important aspects like Spanish home insurance, getting the appraisal right is crucial. Don’t confuse the official property appraisal with the valuation given to you by a real estate agent or the owner—they are not the same thing!
Who Conducts the Appraisal?
Not just anyone can do it. In Spain, only reports issued by appraisal companies certified and authorized by the Bank of Spain are accepted by mortgage lenders. These companies are independent third parties, separate from the banks, which theoretically ensures an objective valuation. Many banks will recommend their partner appraisal companies, but by law, we as customers have the full right to choose any certified appraisal company ourselves.
There are many such companies on the market, and the larger ones generally have a good reputation. I’ve put together a simple table for your reference:
| Appraisal Company | Key Features |
|---|
| TINSA | Largest market share, recognized by virtually all banks, and known for its quick turnaround. |
| Sociedad de Tasación | A long-established and highly professional company with extensive coverage. |
| Valtecsa | Another major appraisal firm with reliable service. |
| CBRE | An internationally renowned real estate services company with a strong appraisal division. |
The choice between them won’t make a huge difference, but the key is to ensure the company is on the Bank of Spain’s list of certified appraisers.
Appraisal Process and Costs
The process typically goes like this: you contact an appraisal company, they send an architect or technical expert to inspect the property, and a few days later, they issue the official report. This is a standard part of the process when buying a home in Spain. As for the cost, there’s no fixed price. It generally ranges from €250 to €600, depending on the property’s size, type, and location. This fee is paid by us, the buyers, and it’s an unavoidable expense. However, it’s a worthwhile investment to ensure a smooth mortgage process. I hope my sharing has been helpful, and I welcome anyone with experience to add their insights!
