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Are low valuations of property in Spain common?

Property Law

Antonio Flores Vila

12th of September 2000

Q. Could you please comment on whether or not it is common in spain for Bank Surveyor Valuations to be significantly lower than actual purchase prices? In connection with a property I am currently purchasing, the Valuation is only two-thirds [65%] of the purchase price!!! I am told that there is nothing wrong with the property and lower valuations are quite common. But why??? Should I be worried???

I look forward to hearing from you soon. Thank you,

Nina Clark

    A. Two thirds of the purchase price is not common at all. It may be that the surveyor is not accurate (or he is simply unexperienced) or that the property is overpriced.

    Normally the purchase price and the valuation figure differ around 10%, at times the valuation being 10% higher that the actual price. What should you do know? You should complain to the bank manager in order to obtain a re-valuation of property. I have done this once and it worked out. And tell them that lower valuations by that amount are not common at all (save the property being grossly overpriced).

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