The property appraisal is a fundamental step to obtain a mortgage. It allows the bank to verify that the property has a value consistent with the requested price and that it is suitable as collateral for the loan.
What is a property appraisal
It is a technical assessment, carried out by an appraiser appointed by the bank, which determines:
the real value of the property
its urban and cadastral compliance
any structural issues
the presence of building code violations
the state of preservation
The appraisal determines how much the bank is willing to finance.
How the appraisal is conducted
The appraiser:
Analyzes the property documents (floor plan, cadastral survey, building permits).
Conducts an on-site inspection to check conditions and measurements.
Compares the property with market values in the area.
Prepares a detailed report that is sent to the bank.
The average duration is 3–7 days.
How much does the appraisal cost
The cost generally varies between 250 and 350 euros, depending on the bank and the type of property.
In some cases, it is free as a commercial promotion.
Why it is so important
The appraisal establishes:
The collateral value of the property
The LTV (Loan To Value), that is, how much the bank can finance
The urban compliance
If the appraised value is lower than the requested price, the bank may:
reduce the amount of the mortgage
require more personal capital
reject the application
Possible outcomes of the appraisal
✔ Positive outcome → the bank proceeds with the mortgage
⚠️ Rectifiable irregularities → can be resolved with cadastral updates
✘ Serious irregularities or violations → mortgage rejected
How to prepare for the appraisal
Make sure the property is tidy and accessible
Check the consistency between the actual state and the floor plan
Prepare documents and building permits
Check for any undeclared internal modifications
Conclusion
The property appraisal is a key moment in the mortgage process. It determines the amount that can be financed and verifies the regularity of the property. Knowing about it allows you to avoid surprises and face the home purchase with greater confidence.
