How to appraise a home

Introduction

When looking for a new home, we naturally focus on certain details: the total floor space, the price of other properties in the neighborhood, the orientation, or the condition of the heating and air conditioning systems. After visiting a handful of properties, we use this information to judge whether a specific house is priced fairly or excessively.

This is essentially how to appraise a house on a personal level. However, a professional appraiser does the exact same thing but with a much higher degree of technical rigor and market knowledge. The main difference is volume and data: while you might visit ten homes during your search, a professional appraiser evaluates hundreds of properties a year. Their daily job is to track exactly how the real estate market evolves and to value specific characteristics with concrete figures.

How to get a house appraised: The inspection

If you are wondering how to get your home appraised correctly, it starts with a thorough visual inspection. Unlike a casual viewing, the appraiser follows a standardized methodology.

According to industry standards, the appraiser checks the quality of materials covering floors and walls, the condition of doors and windows, the lighting, built-in wardrobes, sanitary fittings, and the age of the boiler. They also check if there is a terrace and when the last renovation was carried out.

Beyond the interior

The valuation isn't limited to the inside of the apartment. When learning how to get a house appraised, you must consider external factors:

• Building state: The condition of the façade and common areas.
• Amenities: Presence of an elevator, swimming pool, yard or garden.
• Services: Proximity to schools, public transport, and shops.

How do I get my house appraised for a mortgage?

This is one of the most common questions. If you need financing, the bank will typically guide you on how to get an appraisal through a certified company. This step is mandatory for mortgage loans to ensure the guarantee covers the loan amount.

However, if you are buying in cash, an appraisal is not legally required, though it is highly recommended. Many buyers ask themselves: "how do I get my house appraised privately?" simply to have a professional valuation and ensure they are paying a fair market price.

The report: How much will my house appraise for?

All the analysis and knowledge acquired during the visit are reflected in a formal report. While the final mortgage value is the most relevant figure answering "how much will my house appraise for," the document includes much more detailed information:

• Administrative data: Details of the applicant, the bank, and the property owner, along with the applicable regulations.
• Cadastral reference: The official identification code of the property.
• Surface area breakdown: A critical comparison between the registered area (Land Registry), the cadastral area, and the checked area (measured by the appraiser). It also distinguishes between useful surface, built surface, and the proportional share of common areas.
• Methods and costs: Typically, two methods are used: the cost method (how much it would cost to rebuild the house) and the comparison method (the price of similar homes in the area). For existing, occupied homes, the comparison method is the standard.
• Other values: Depending on the purpose, the report may list market value, residual value, or replacement value, each calculated with its own methodology.
• Conditioning factors: The appraiser may include relevant warnings, such as the validity period of the report or observations if market prices are fluctuating significantly.

Trust the experts at CaixaBank

Understanding how to appraise a home is the first step towards a secure investment. Whether you need an appraisal to apply for a mortgage or simply want to know the real value of a property, at CaixaBank we guide you through the entire process. Check our mortgage calculator or visit us to find the financing solution that best fits your needs.