Mortgage valuation or valuation for selling: which do you need?

The difference at a glance

The regulations link the valuation method to its purpose. A mortgage valuation is not simply a sales estimate with an official stamp added. Order ECO/805/2003, Article 3 (in Spanish).

Selling a property: start with the decision you need to make

A valuation can help you set an asking price, assess an offer or check your expectations before instructing an estate agent.

Ask what is included: whether there will be a visit, which documents will be reviewed and whether you will receive a report explaining the conclusion. Services described as a “valuation” do not all have the same scope.

Be clear about what is being sold: the home, garage, storage room and any other associated units. Mention any alterations or extensions you know about and provide the documents you have. An incomplete description makes it harder to compare the property with genuinely similar homes.

In Málaga, the Costa del Sol and the Guadalhorce Valley, naming the municipality is a start, but not a sufficient description. Include the property type, its location and the reason for the valuation.

Applying for a mortgage: make that clear from the start

Spanish law requires an appropriate valuation of property offered as security before the loan agreement is signed. The valuation must be independent of the lender and comply with the applicable rules. Law 5/2019, Article 13 (in Spanish).

I carry out the property visit and prepare the technical report; the mortgage valuation is validated and issued by a valuation company accredited by the Banco de España. You will know which company is involved before you commission the work.

The work includes checks on the property and its documentation. Differences between the Land Registry, the Cadastre and what is observed during the visit are not resolved by automatically accepting whichever figure appears most favourable. Order ECO/805/2003, Articles 7 and 8 (in Spanish).

Three questions before commissioning a valuation

Does a favourable valuation guarantee a mortgage?

No. The bank also assesses your ability to repay and applies its lending policy. A particular valuation figure does not guarantee a particular loan amount. The Banco de España distinguishes between valuing the security and granting the loan (in Spanish).

Can I use a valuation I already have?

Credit institutions must accept a valuation provided by the customer if it meets the legal requirements for accreditation and has not expired. They may carry out checks, but cannot charge the customer for them. This does not oblige them to grant the mortgage. Before commissioning another valuation, provide the existing report so its purpose and date can be checked. Law 2/1981, Article tercero bis I (in Spanish).

Should I arrange the valuation as soon as possible?

Not always. If you depend on financing, discuss its feasibility with the lender first. The Banco de España's good-practice guidance (in Spanish) recommends assessing the relevant factors, including ability to repay, before the customer incurs the valuation cost.

Reports subject to Order ECO/805/2003 also expire six months after issue, so it is worth coordinating the valuation with your planned transaction. Order ECO/805/2003, Article 62 (in Spanish).

How to prepare without duplicating work

The owner, buyer and estate agent can start by agreeing four points:

1. Purpose: selling, assessing a purchase or applying for financing.
2. Property and associated units: exactly what should be included in the valuation.
3. Access: who will arrange the visit and when they are available.
4. Documents and timing: what is available and the deadline for the transaction.

If an agency is involved, see the service for estate agents.