The Property Valuation

The valuation is a report or valuation certificate, drafted by a professional, that contains, in a justified manner, the value of a property based on certain predefined parameters.Its extreme importance in the house buying process lies in the fact that it is key for requesting the mortgage loan.

The maximum amount of any possible mortgage will be limited by the value calculated in the report and it is how the banks guarantee that the amount of money they lend is not superior to the value of the property.Article 7 of Spanish Law 2/1981, dated March 25, regarding the Regulation of the Mortgage Market, establishes that for a mortgage credit to be mobilised via the issue of the deeds regulated by said Law, the goods subject to mortgage must have been valued by the valuation services of the credit entities or by other valuation services that fulfil established regulatory requirements.

However, requesting one of these reports is not limited to these situations. Any property owner can request a valuation, for example, if they are planning to sell a property they own and they want to know by how much the value of said property has changed since they purchased it.