Valuations in Spain

I am often asked to value properties for owners looking to sell and I have to tell them that valuations in Spain are a very inexact science! I worked for a time as a valuer in the UK, many years ago, and when you sweep the smokescreen away it’s quite straight forward. In any street the houses are broadly similar so it’s easy to get an idea of what they are worth. If the average price is X any house will be worth x+ or x- depending on condition, facilities (new kitchen, bathrooms) and the garden size etc, etc. Add to this that even in a recession people are buying houses because everyone NEEDS somewhere to live.

 In Spain it is more difficult! No two houses are the same so you have little to compare them with, fashion makes a huge impact (this week everyone wants to be in Almeria, next week Granada is the chosen place). More importantly however is that a home in Spain for most people is a luxury purchase. They want one but they don’t have to have one. If they can’t get what they want in Spain they can go to Bulgaria, Cyprus, Greece or the USA or Brazil. Or they can simply stay in the UK.

 Most Spanish valuers doing mortgage valuations simply multiply the built area of the property by a building cost (say 1,000 Euros per m2). This gives some absolutely ridiculous results like the immaculately maintained country house with 8 bedrooms, 3 bathrooms, pool, 5,000m2 land, views, easy access and all 35 minutes from Malaga airport that was valued at 165,000 Euros during a boom period!

 

At the end of the day whilst a formal valuation may be difficult common sense gives a general feel of correct pricing. And then it is down to negotiation! Buyers know what they can afford to pay, sellers what they can afford to take and the figure they come to is the only real valuation!

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