What’s the difference between valuation and appraisal?
In many cases there is a confusion between what is a valuation and an appraisal, especially when we want to buy or sell a property. Although both actions serve to know the value of a property, there are substantial differences that we believe should be defined. Do you want to know the difference between valuation and appraisal?
Mainly and, summarizing in a few lines, the main difference is its legal value.
The most important characteristic of the valuation is that it establishes the value of the property in an indicative manner without having to visit the property. The cadastral data of the same already offer their objective value. Therefore, there are online valuations that simply filling a form determine its value. By not complying with a regulated procedure, they lack legal value.
The appraisal, on the other hand, is a legal certificate for the valuation and is made with a specific methodology that complies with the legal regulations. It must be carried out by a certified architect or technician, who assigns a value to the home by means of an official objective scale (ECO / 805/2003).
Knowing this, the client will make a valuation or appraisal depending on their needs. Generally, the valuation is carried out on a regular basis to sell the property while the appraisal has other purposes.
The appraisal we need to do to apply for a mortgage, for the distribution of a hacienda or distribution of goods.
So, if we need to know the value of the property in an official way, an appraisal will be necessary, if we want to know the value on a personal level, we will only need an appraisal.