This work carried out by technical appraisers when valuing real estate is subject to a series of legal and technical conditions. In case of non-compliance with these essential elements, it will not have timely effects:
- All real estate appraisal must indicate the exact location of the real estate.
- You should do a study on the state of conservation of the same.
- Assess the age of the structure ; as well as the environment of the property, that is, the urban planning and neighborhood where it is inserted.
- You should always take into account the constructed and useful area of the property, as well as the common areas.
- The intended use of that asset is also taken into account .
- And the distribution of the different rooms, different supplies…
- The technician must verify the information offered in the property registry (description, charges and easements), the adequacy of current urban planning and if it is affected by any public protection regime or there are annotations affected to that property (seizures…).
- In addition, they often use testimonials from recent sales to adapt to the market and outline the value of the property.
Therefore, a real estate appraisal is not just a document that provides the market value of a home; but it is an individual “x-ray” of that real estate that can serve as an official certificate of the legality of that property and the building where it is inserted.
One of the purposes of the real estate appraisal is to use the real estate valuation report to constitute mortgages. This type of appraisal is so frequent that it truly constitutes a specialty within this field.
Basically, this report consists of obtaining all the necessary information so that the property in question can serve as collateral for obtaining a bank loan, and they are regulated by the Bank of Spain.
It is advisable to read this report carefully, since many times in mortgages with higher mortgage loans (mortgages with 100% financing) there are hidden reasons that can be discovered thanks to these reports.