They are used as synonyms but they are not, and confusing them costs money or trouble: the official appraisal and the market valuation are different documents, prepared by different professionals, for different purposes. We clarify the difference between appraisal and valuation and, above all, which one you need depending on what you plan to do.
The official (certified) appraisal
It is issued by an appraisal company certified by the Bank of Spain, signed by a competent technician and prepared in accordance with the ECO regulations. It is the document a bank requires to grant a mortgage, and the valid report for inheritances with disputes, legal proceedings, contentious divorces or corporate accounting. It usually costs between €300 and €500 (more for large villas), takes several days and is valid for six months.
The market valuation
It is carried out by an agency using a method: comparable actual sales (not listings), condition of the property, active demand for that property type in that area and observed selling times. Its purpose is to set the asking price and sales strategy. It is not valid for the bank, but for selling it is more useful than the appraisal: it reflects what the market pays today, not a normative value. At Mayrasa we provide it free of charge.
Why do they sometimes show different figures?
Because they measure different things. The appraisal applies prudent, regulatory criteria (it may be lower in hot markets or higher in slow ones); the valuation seeks the exact point at which your property will sell within a reasonable time. The same villa might appraise at €240,000 and sell for €255,000 — or the opposite. Neither “is wrong”: they answer different questions.
Which one you need, depending on your case
You are selling: market valuation (the appraisal will come later, paid for by your buyer for their mortgage). You are buying with a mortgage: official appraisal, your bank will request it. Inheritance or amicable divorce: an objective valuation is usually enough to divide assets peacefully; if there is dispute or court involvement, a certified appraisal. Dissolution of joint ownership: a mutually agreed valuation as a basis and, if the bank needs to novate the mortgage, an appraisal.
The mistake to avoid: “valuing” with portals
Property portals show listing prices —what people ask for, not what they achieve— and neighbourhood average prices ignore orientation, floor level, condition and the specifics of the development. Going to market with that number is the number one reason properties get “burned.” We explain this in detail in which factors increase and decrease your property’s price.
Are you deciding what to do with your property? Start with our free valuation using real sales in your area: it’s the figure that clarifies everything else. And if the next step is to sell, we’ll support you through the whole process. First the true value; then the decisions.
