Interview with an expert: A professional real estate appraisal proves the legality of the property
In a purchase transaction, both the buyer and the seller can request our services to evaluate the property in question.
How does an independent real estate valuation company work in Spain? Daniel Moreno, director of Tinsa's National Sales Network, answers key questions and explains why a professional audit can also have tax benefits. Further information can be found at www.tinsa.com.
Whose side are Tinsa on, buyer or seller?
In a purchase transaction, both! The buyer and the seller can request our services to evaluate the property in question. We conduct mortgage reviews and our technicians also check to see if the property has any urban planning, licencing or other issues. More and more foreign buyers, especially those who are looking to buy on the coast, are requesting examinations in order to feel safe in the knowledge that an expert has looked over these important issues.
How does an independent review work?
In a report, the characteristics of the property are analysed, taking into account the effect on the price produced by the local market and all other factors in the wider real estate sector. In this analysis of the property the type, quality of construction, area, age, condition, orientation and equipment (heating, air conditioning, etc.) are considered. Furthermore, the city regulations will also be checked to see, for example, if the property is a listed building. The surrounding environment and neighbourhood, the view from the property and the infrastructure are also evaluated.
Do you also check operational costs to identify potential savings?
Energy efficiency is an aspect that is becoming more and more important and the energy certificate provides information about the energy consumption of the property. We identify which investments are worthwhile to improve the energy profile of the property and benefit from savings.
What should be considered before concluding a sales contract to avoid unforeseen financial implications?
From the buyer’s perspective, it is highly recommended to check the data contained in the cadastral excerpt and the land registry. In particular, in complex fincas and agricultural properties where different property usages are combined, and different facilities are available, there is a higher risk of miscalculation than in other buildings. It is important to use the time frame of purchasing to update and correct the cadastral and land registry information, as this information serves as a reference for the calculation of taxes related to the ownership and transfer of real estate. These taxes are IBI, Patrimonio, ITP and AJD.