Current Market Value v. Mortgage Valuations
The current market value assessments provided by their bank’s ‘Tasadores’ have left numerous selling agents and buyers dissatisfied. These valuers are obliged to value according to the Bank of Spain’s regulations. They are very cautious in trying to ensure that the bank will always get its money back if it must foreclose on the loan. There are many deductions they must make. Some of them are : Estimated agent and legal fees, plus notary and other costs, that can total 10-15%.
While working as an expert valuation witness in an English divorce case involving Spanish property, I explained the situation and the Court decided that the tasador’s valuation was only 57% of the real current market value. That is an extreme example, which was made worse by excluding large unfinished underbuild areas of the building not shown in the Title description, but perfectly capable of being used, and would undoubtedly be a plus for potential buyers.
Survey Spain provide current market valuations, to the requirements of RICS and the International Valuation Standards Council.
