Are bank appraisals reliable?

If you are going to request the appraisal for your mortgage, it is natural to wonder how reliable appraisals are. Here we answer this and other questions.

Three key points on the independence of appraisals

• In Spain, banks and appraisal companies are independent companies; this was regulated in the Mortgage Law with the 2007 and 2013 reforms. There can be no financial stake between them.
• Mortgage appraisals are regulated by Order ECO/805/2003. Only companies approved by the Bank of Spain can sign them.
• By law, companies must have an internal code of conduct: appraisers cannot appraise homes belonging to relatives up to the second degree.

Things to bear in mind

• You are free to hire the appraisal company you choose. Even if the bank offers to arrange it, you pay the costs and can look for the best price.
• Banks must accept appraisals from any approved company. You can take your appraisal from one bank to another while it is valid.

How do banks appraise homes?

Banks do not appraise directly. They commission the work from companies approved by the Bank of Spain that they have internally approved as providers. They normally tell you when the appraiser will visit the home, when you will receive the report and the value assigned.

Remember: you can always order your appraisal independently and compare prices.