Real Estate Appraisal: Why It’s a Crucial Step in Property Transactions
In real estate transactions, property valuation is not just a formality—it’s a crucial step that ensures transparency and fairness in pricing. A real estate appraisal is not only an essential requirement for applying for a mortgage, but it has also become an indispensable tool for guaranteeing equity and clarity in sales, benefiting both the buyer and the seller.
Banks, in order to protect their investment and ensure the security of the loan, require a thorough examination to determine the true market value of the property. At the same time, the seller gains an objective estimate of their property, while the buyer can be confident that they are making a sound investment. Read on to learn more about the role of the appraiser and why a real estate appraisal is so critical for market stability.
What Is a Real Estate Appraisal?
A real estate appraisal is a professional and detailed assessment of a property’s market value, providing a solid foundation for both purchase negotiations and mortgage approval.
Carried out by industry experts, this evaluation is based on an in-depth analysis that considers numerous factors—from obvious ones such as location and size, to technical aspects such as the condition of systems and compliance with building regulations.
Why It Matters
A property valuation is not only about determining its market price—it is also a critical component for ensuring transparency during a real estate transaction.
A detailed appraisal protects both buyer and seller by ensuring that the agreed price is fair and based on concrete, verifiable data. A professional valuation can also prevent overpricing or underpricing of properties, helping to stabilize the real estate market and providing a reliable benchmark for future investments.
Who Can Carry Out a Real Estate Appraisal?
An appraisal is most often commissioned by the bank before granting a mortgage. Its purpose is to ensure that the value of the property corresponds to the amount of money being loaned, protecting the lending institution from potential losses and guaranteeing that the financing is tied to a properly evaluated property. The professional responsible for this process is the real estate appraiser, who has specific training in the real estate field and holds recognized certification. These professionals are often surveyors, architects, or engineers who, thanks to their expertise, can provide accurate and reliable valuations. Real estate agents can also carry out property valuations, especially for initial estimates. In cases where more complex and technically demanding evaluations are required, the agent may work alongside a specialized professional or advise the client on the best way to proceed.
Who Pays for the Appraisal?
One of the most common questions about a property appraisal for a mortgage application is: “Who covers the cost of the real estate appraiser?” When the bank requests the property evaluation, the cost is generally borne by the buyer applying for the mortgage.
Therefore, it’s important to include this expense in the overall budget for purchasing a home.
At the same time—if the bank allows it—the buyer can usually choose between two payment methods:
• paying the bank directly for the appraisal, after which the bank will compensate the appraiser;
• having the bank advance the appraisal fee and then deduct the amount from the mortgage disbursement.
The Valuation Process
How is the value of a property determined?
The appraisal process requires an analysis of several documents that confirm the property’s legality and condition, such as the deed of sale, land registry records, zoning plans, certificates of occupancy, energy performance certificates, and, if available, reports of renovations or significant modifications.
Then, based on the property’s specific features, valuation adjustment coefficients are applied to compare it with similar properties on the market, resulting in a realistic and reliable estimate.
At Hasamia, we use Property Technology to provide our clients with innovative digital solutions, delivering faster, more accurate, and more accessible appraisals—reducing both the time and costs associated with traditional valuations.
Why It Matters
Understanding the value and implications of a real estate appraisal is essential for anyone looking to buy a home with a mortgage or sell a property. This document not only facilitates price negotiation but also ensures that the property’s condition is transparent and aligned with the expectations of all parties involved.
👉 Contact us today to request a free real estate appraisal and receive a detailed report including property features, estimated value, nearby points of interest, a list of comparable homes, and many other useful insights.
