Spanish Property Survey: Types and Cost of House Valuations in Spain

Both individuals and businesses need to make sure that their investment in a new or used property is well justified. For this, it is essential to perform a survey before making a purchase. Well, the house you're buying may look solid, but there can be hidden problems which only a surveyor can spot. At best it can reassure you that the house is secure and structurally sound and of its bad news you might reconsider or reduce your offer: for instance, if the roof needs fixing for 10,000 euros. As an intelligent measure, survey's benefits allow you to obtain valuable information to negotiate the price.

There are different types of survey in Spain and some go into more depth than others. The most popular ones are:

• Mortgage Survey
• Conditional Report
• RICS HomeBuyer Report
• Snagging Survey
• Building Survey
• Structural Survey
• Property Valuation

Above, we have listed the most popular property surveys. Among these types, the most popular in Spain are the first and the last one – in order to get mortgage and to determine a market price for a good deal.

In case you are going to buy a home with mortgage, or if a prospective buyer purchases your home with financing, the bank may require certain inspection.

They hire an appraiser to inspect the property, both inside and outside, to determine if it is worth the amount you are asking for. The biggest thing to note is that this type of report will tell you nothing about the structural state of the property or any other defects.

We advise buyers to order this type of survey (within a month or two, read your contract carefully!) after the construction of the building to find out whether the quality of work and materials is as it is stated, which can help the owner make claims to the developer on time, and the contractors to receive remuneration that developers refuse to pay without evidence.

Usually, Spanish developers give a guarantee of 10 years. But if you miss this period of a month or two (depending on your contract), when it is possible to discuss some issues with developer, then you will only be able to solve a dispute in a court, that is obviously not an easy and fast process.

This is the first-level report that includes only some brief and evident information on a condition of a property. It does not go into details and does not include advices on dealing with possible problems. It involves a thorough look around, focusing on urgent matters that do need attention, like damp or damaged roof and it will recommend further specialist reports if needed. If there is something you worry about in the property, you can ask the surveyor to pay attention to it and report to you formally. You will also not find any information on a market value of your property. We recommend this report only if you need to know the brief expert opinion on a chosen property that is in a good condition.

This type of survey is recommended for a secondary market property in a good condition and in case you want to make sure you pay a reasonable price for the property, because it includes valuation. When conducting this inspection of real estate, specialists look at the issues in more detailed way, and also give advice on how to resolve the problem points and estimate possible costs. This way you will be able to negotiate the price. Worth noting that homebuyer report is the most popular among others.

Structural survey is suitable for old properties in need of reconstruction or major repairs. In case of this inspection, a specialist not only detects the issues in a detail but researches the reasons and a nature of structural problems of the building. This type of survey is recommended only for old houses or in case a surveyor who performed the building survey advised to continue with this one. Structural survey is usually carried out by a structural engineer.

In case of valuation survey, tasador inspects the property and examines the location, infrastructure, and general condition. In addition, tasador conducts market analysis in accordance with information already available on the market, sets the cost of restoration and the maximum market value.

Property valuation specialists and companies operating in Spain collect market information based on their activities and recommendations to customers when issuing permits, selling, purchasing, planning and developing.

According to the law, the report should contain information on three similar transactions or on six similar types of property on the market. Also, this data should be no older than 12 months, and the tasador must explain why exactly these real estates are chosen for comparison with the one that he or she is evaluating. The submitted report, performed by an order of a legal entity (for example, at the request of a bank) or individual, has a validity period of 3 months.

In times of emerging market and a wide variety of properties it is not easy to find a trustful appraisal of a real estate. To ensure that the report reflects the reality, not a subjective opinion, the only solution is to choose the RICS survey.

RICS Condition Report, RICS Building Survey, RICS Structural Report accordingly match all previously listed types of surveys. The only difference is that such a surveyor will be a member of RICS. What is does it mean? RICS (Royal Institution of Chartered Surveyors) is the largest and most prestigious organization of real estate professionals in the world. It is a center par excellence for aspects related to valuation, it sets standards for all its members in the activity of valuations, based on ethics, reality and objectivity.

To be an RICS approved agency, at least one of the members of the Board must be approved. Once the certification is obtained, a RICS agent will be controlled and valued to always comply with the strict standards of professionalism, in danger of losing the approval and being expelled from the system.

Generally, property survey is a process in which all the components of a house are reviewed: construction, roof, plumbing, electrical system, heating, air conditioning, insulation and ventilation. Then the inspector draws up a report with the results and suggestions on repairs. As the result, survey offers more detailed information than the real estate agent or even owner does not possess.

Depending on a type of a survey, it considers different levels of involvement and inspection. Let's compare the two most popular types of survey so you can have an understanding and be able to choose the one you need.

In order to have an idea of what exactly is included in the written report, we suggest you look at the samples of these two reports.

To order a property survey you will need to find an authorized specialist — property surveyor. We strongly recommend finding the one that has a membership in RICS, which ensures that this specialist meets the highest industry standards and has the latest knowledge and skills.

Property surveyors usually have architectural or engineering background in studies and/or experience. But if a specialist has a RICS membership, this means that he or she has passed the exam and not only has an education, but is already quite experienced in real estate inspections.

Surveyors sometimes specialize in certain types of property, so quiz them to find out about their experience with similar properties and if there's something specific you'd like them to look at or advise on — let them know.

Unfortunately, survey of your home or premise does not guarantee that issues will not arise after you arrive. However, if you think that a problem could not be missed during the survey or valuation, and it should have been stated in the report, we advise you to call and meet with an engineer to resolve the situation.

Companies conducting these surveys must have compensation insurance. This amount of insurance coverage should cover expenses of restoring your house in case the inspector misses something he should have mentioned in a report. In case it is RICS member, you should ask him of her of a complaints-handling procedure and apply for a compensation. Misunderstandings are usually resolved this way.

In case you are owner, you may think you know the state of the house, when actually there could be structural problems that, because they are more complicated to detect, you may not be aware of. An inspection will then identify the problems to be repaired and after that you may raise a price on the property or negotiate properly with the buyer.

For the buyer the valuation is highly recommended regardless of the age of the house. It is a common mistake to think that because it is a new construction it is not necessary to do the inspection. We assure you, that it is important to know what you are paying for. If you invest in a secondary housing, it is important to know, in case some structural or other modification were made, if these changes were performed with the permission of the mayor's office and if they went through an inspection afterwards.

Once the inspection is finished, you receive a detailed report with photos, which you can discuss with your lawyer before signing the acceptance contract, and thus determine if the negotiations are fair, if a counter offer could be made with a price according to the fixes to be performed or if it is better to cancel the deal at all.

Finally, consider how much money you are willing to invest in your property and compare the average price of 300 to 500 EUR of a valuation in relation to the results you get. There is no doubt that the valuation has its benefits: you will be able to know in depth the property in which you are going to invest and identify possible costs. And perhaps, the most important thing is your peace of mind!

Homebuyer report is about the property valuation plus a thorough inspection of a property, it is a survey designed for homes of a reasonable conditions of a traditional type of construction (villa, townhouse, apartment). It tells you about the important existing issues if there are ones, assessing their level of danger and urgency to resolve.

Building survey reports are extremely detailed and provide suggested repairs as well as estimates on costs. This type of a survey is recommended for homes in disrepair, for unusual architectural solutions to assess their suitability for housing or business. In case you are dealing with old properties or plan on major works, you should also consider this type of survey. Remember, that surveyors tend to be cautious and overestimate rather than underestimate. It can help to get a second opinion from a builder at how much you actually end up having to spend.

Factors that influence the final price of a property survey are as follows:

• the type of the survey;
• type and condition of the property (its size);
• types of equipment and devices necessary to perform the survey

Average costs for the most popular types of surveys varies from 300 EUR for a studio to 800 EUR for a villa. Concerning the rest of surveys, they are subject to a wide range of cost. Structural or building survey, due to the complexity of the process, may cost 2000 EUR or even more.

To conclude with, let's look at the pros and cons of property survey.

Although inspecting your property can be stressful, there are some benefits that may arise.

But there are certain negative aspects that you should consider when inspecting your property.

All in all, when investing or buying, one of your main concerns should be focused on performing the technical inspection of a house or premise. This precautionary measure makes it easier for you to learn more about the property that interests you, to understand more precisely the risks involved and to establish more favorable negotiation conditions to make a purchase more profitable.