Investment approach
Bank tasación and market valuation: three values of one flat
One flat can have several values: market, mortgage, tax. What each means in law, who calculates it and which figure to use for the loan, negotiation and tax.
A bank tasación (valuation) and a market valuation answer different questions: the tasación determines what collateral the bank can accept for a loan, and the market valuation shows what the flat is likely to sell for now. For a mortgage, the valuer must apply the principle of prudence: of equally probable scenarios, they take the one that gives the lower value (art. 3 Orden ECO/805/2003, the ministerial order on property valuation standards). So a gap between the two figures is normal, and what matters is understanding which one a decision needs.
What values the law distinguishes
Orden ECO/805/2003 defines several values, and in one report they can stand side by side (art. 4).
- Valor de mercado (market value). The price at which the property can be sold by private contract between a willing seller and an independent buyer on the valuation date, with public offering and a normal period for negotiation.
- Valor hipotecario (mortgage lending value). The value set by a prudent assessment of the possibility of selling the property in the future, taking account of its long-term characteristics, normal local market conditions and its current use. Speculative elements are not included in it.
- Valor de tasación (valuation value). The value that the Orden sets for each type of property; it is the one with legal significance for the purposes of the Orden, first of all for a mortgage.
The Orden calls speculative the expectations of a short-term resale, of a future change of use or building density, and of new infrastructure whose appearance is not guaranteed. A buyer who pays for the "prospects of the area" is paying precisely for what the bank will not include in the collateral value.
Who does a tasación and who does a market valuation
A tasación for a mortgage is done by a company approved by the Banco de España and entered in its special register, or by the bank's own approved valuation service (art. 4 Orden ECO/805/2003); the law also allows an approved professional. Under the real-estate credit law the valuer must be independent of the bank and of the credit intermediary (art. 13 Ley 5/2019). The report is valid for six months from the date of issue (art. 62 Orden ECO/805/2003).
The law does not regulate a market valuation for negotiation: it is done by analysts, buyers' agents, and valuers outside the ECO regime. Its value lies in the method: closed transactions nearby, adjustments, a range. How it is built is covered in the article on valuation from real transactions.
Which figure to use for what
Each valuation suits its own decision, and mixing them up is costly.
| Valuation | Who calculates it | What it is good for | What it does not tell you |
|---|---|---|---|
| Tasación under ECO/805/2003 | A company from the Banco de España register | The size of the mortgage | What the next buyer is ready to pay |
| Market valuation from transactions | An analyst, a valuer outside the ECO regime | Making an offer and negotiating | How much the bank will lend |
| Catastro valor de referencia | The Dirección General del Catastro | The ITP tax base | The market price: by definition it is not above the market |
| The seller's agent's opinion | The seller's agency | The seller's expectations | An independent value |
The Catastro states outright that the valor de referencia is determined from notarial transactions with a reducing coefficient and does not exceed market value (Catastro); more in the article on the valor de referencia.
How one flat gets different figures: a worked example
Worked example, not a forecast. The buyer has agreed a price of 600,000 €.
| Figure | Amount | What follows from it |
|---|---|---|
| Price in the contract | 600,000 € | The ITP base, if it is above the valor de referencia |
| Market valuation from transactions | 570,000–590,000 € | An overpayment of 10,000–30,000 € against the range |
| Tasación | 560,000 € | The bank calculates the loan from it if it is below the price |
| Valor de referencia | 450,000 € | Tax is still calculated on the price of 600,000 € |
The ITP (transfer tax) base is the valor de referencia, and if the price in the contract is higher, the price (art. 10 TRLITPAJD). A low tax value does not reduce the tax if the buyer has agreed to a higher price. And a low tasación with a loan means more of your own money: how to close that gap is covered in the article on the tasación in a mortgage.
What to do if the valuations diverge
- Find out from the bank in writing what figure the loan is calculated on and what share.
- Compare the tasación with the market range: if both are below the price, an overpayment is likely.
- Show the seller the valuer's report and the nearby transactions as an argument in negotiation.
- If the report raises doubts, order a valuation from another approved company, bearing in mind the six-month validity.
- Recalculate your own funds and the financing condition in the arras (deposit contract).
When a tasación does not work as a price guide
A tasación is a poor basis for a price decision when buying without a loan: its job is to protect the collateral, not to answer whether the buyer is overpaying. It also does not suit unique properties with few comparables, where the prudent method pulls the figure down from the market.
And conversely, a market valuation does not replace a tasación for the bank: a loan is granted only on the report of an approved valuer. DNPI prepares a market range from transactions as part of a property valuation.
Questions and answers
Why is the tasación often lower than the agreed price?
A valuer for a mortgage must apply the principle of prudence and exclude speculative elements. The seller's price reflects expectations; the tasación reflects the value of the collateral.
Can I use a tasación as the market price of a flat?
As a guide, yes, but adjusted for its purpose: it is prudent by law. For negotiation, a market valuation from closed transactions nearby is more useful.
How long is a tasación valid?
Six months from the date the report is issued under art. 62 of Orden ECO/805/2003. If the deal drags on, a new or updated valuation is needed.
Does the valor de referencia affect the tasación?
They are different figures for different purposes. The valor de referencia serves as the ITP tax base, the tasación sets the collateral for the bank, and one does not replace the other.
Who can do a tasación for a mortgage?
Under art. 13 of Ley 5/2019, a valuation company or a bank's valuation service approved by the Banco de España, or a professional approved under Real Decreto 775/1997, independent of the bank. A report from an agent or consultant outside this regime will not be accepted by the bank for a mortgage.
