One of the steps to buy a house is the appraisal, as it is useful to know the value of the apartment in question and, in fact, it is mandatory if you are going to take out a mortgage. In today’s blog we will see what it is and how to know the appraisal value of a house.
What is an appraisal and what is it for ?
A real estate appraisal is a document that establishes the price of a property after a visit from a professional home appraiser. To make the appraisal different aspects are taken into account:
- The construction materials
- The insulation
- The characteristics of the building and the apartment
- The illumination
- The state of conservation or age
- The area
- The Technical Inspection of a Building (ITE)
- The energetic qualification
The appraisal is important in a sale and purchase process for different reasons: the bank needs the documentation to process the mortgage, the buyer to apply for it and the seller to establish the sale price.
In reality, the appraisal will only be necessary when the buyer needs the mortgage, and the seller can always opt for online appraisal tools to know the price of the property.
Recommended reading: What does the value of your home depend on?
How can you know the appraised value of a property ?
To know the appraised value of a home you can use online appraisal tools or hire a home appraiser to officially perform the appraisal and, thus, you can take out a mortgage.
On the other hand, when you hire a home appraiser, he follows a series of steps to know the value of your property:
- To visit the house and to make a first study of the state of conservation, the area, the light….
- During the visit, the home appraiser will take photographs and a floor plan.
- Witness» homes, these are homes in the area that are used by the home appraisers to compare them.
- He will have to identify that the registered property is correct.
- Finally, ensure that there is no urban planning illegality through the nota simple.
Once the home appraiser is finished with the process, which usually takes between 48 and 72 hours from the time he visits the property, to make the report, if the appraisal value is lower than the purchase price, you’ll need additional savings to pay the difference.
If the appraisal value is lower than the purchase price, you’ll need additional savings to pay the difference, as banks typically require the appraised value to be at least as high as the sale price to provide 80% financing.
Price of an appraisal: appraised value of a home
The average price of an appraisal of a property is usually between a range of around 100 and 400 €. To establish the prices there are two points that are determinant and that influence the final cost. They are the following:
- Location of the property. It is something very important because, as it is obvious, it is not the same to appraise a residence located in a capital or big city, than in a smaller town or village.
- Extra information. The appraiser may require additional information, such as plans or registry notes, which will influence the appraisal and final price.
How does the online appraisal work ?
Online appraisal is a free and convenient alternative to professional appraisal. Using Big Data, online tools gather information and calculate the updated value of your home. They focus on three main aspects :
- The market that is, the price of homes in the area.
- The cadastre there you will find the information of the house. But you will also find the data of the real estate transactions carried out in the last years. This will help to mark more accurately the value of the house to go on sale with the correct price.
- Real estate portals is a great source of information to make comparisons with other homes.
It is important to keep in mind that there are three factors that are used for the appraisal, but they are complementary. That is to say, the sale price of your neighbor’s house does not have to be well appraised, so you cannot base it only on the price of the houses in your area.
Recommended reading: The importance of the price of the house in the buying and selling process.
How long does an appraisal last ?
Remember that the real estate market is not fixed, but highly variable. Consequently, the prices fluctuate without stopping. That is why you should know that the appraisal has a legal validity of six months. Keep this in mind when applying for a mortgage.
If you want to sell your apartment and do not know where to start, contact us and we will be happy to help you.
