When it comes to calculating the value of a property, the most frequent resource in the real estate market are hereditary appraisals or property appraisals, a way to determine the base value of the property in the market. These appraisals are frequent especially during the buying and selling process of a property, since it is a very important process for the seller to receive a fair amount for the sale; However, this type of valuation is also fundamental for other processes, for example, the distribution of assets due to an inheritance. What are the fundamental aspects of the patrimonial appraisals that you must take into account? We tell you!

What are the appraisals of assets?

Before entering fully into the appraisals, it is important to understand that a valuation and an appraisal do not refer to the same, since the appraisal always involves a document (assessment report) issued and signed by a professional expert in the field.

In Spain, property appraisals are the most common appraisals, and are based in particular on the presentation and certification of the value of real estate declared in the Income Tax; a document, which -as we mentioned- must be endorsed by a qualified professional in property appraisal.

Depending on this appraisal, you can operate legally within the real estate industry, in order to make the valuation of a home and thus define your sale or purchase price, as appropriate.

On the other hand, it may also be the case that the purpose of valuation of the property is not the sale, but the distribution of assets of an inheritance; in which case, it receives the name of hereditary valuation.

Purposes of a property valuation

As we said, the main purpose is to estimate the value of a property for subsequent purchase or, in the case of an inheritance, to make a fair distribution of goods between the heirs. However, these real estate appraisals also have other purposes:

• Home insurance
• Imposition of the cadaster
• Auctions
• Expropriations
• Warranty
• Rent or concession of the property
• Etc.

Aspects that influence an appraisal of housing

• The final valuation of the property is conditioned by several factors, among which the most important are.
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• Location of the property: If the house is located in a good area, with good infrastructure around (public transport, green areas, shops, schools ...), the valuation will be higher.
• Surface: Not only the number of square meters is important, since not all square meters are worth the same. The intelligent distribution of the surface will also be essential here.
• Orientation: Another critical factor in the appraisal process is the property. This influences important elements such as the amount of natural light, ventilation, noise or views (the more attractive they are, the higher the value will be).
• Condition of the home: The age of the building and the fact that it is rehabilitated or renovated, are also very important factors. The professional in charge of the appraisal will also evaluate the equipment (heating or air conditioning), the finishes and elements such as façade, balconies, etc. In addition, it will ensure that the property has passed the ITE (Technical Inspection of Buildings).

Remember that property appraisals are regulated by the Ministry of Economy and Finance, so it is essential to comply with established regulations. If you have doubts, it is best to consult with specialists to advise you. In Proyectos Insulares we will be happy to help you!