The sale price of a house and appraised value: what is the difference?

The sale price of a house and appraised value: what is the difference?

How much does my house cost? This is a question that frequently arises among those owners who decide to embark on a new adventure in a new property, leaving behind what had been their home until now. However, before making this decision, it is important that the owner knows the money you can get sell this home, since in this way you will know if it is worth it or not to continue with this operation, and if so, to be able to set a correct price for it.

The sale price of a home is the value for which an owner sells his house and this is not objective, but can be influenced by numerous elements such as the price for which a similar property is sold on the market or even the needs of the sellers at the time of the operation, among others.

The appraised value of a home “is the result of the calculation of an expert or certified appraiserwho carries out a detailed analysis of the characteristics of the property”, as explained from the Fotocasa real estate portal. In this sense, to calculate the appraisal price takes into account factors such as locationreforms, benefits of the property or surface, among others.

Unlike the sale price, the latter is real and objective, since It is used by financial institutions to grant mortgage loans to home buyers and calculate its maximum amount. In addition, it is important to take into account that all those who want to buy a house and need a mortgage for it, must order an appraisal to verify the real value of the property.

What happens if both prices do not match?

When the sale price is lower than the appraisal value, this is beneficial for the buyer, since they will be acquiring a property of higher value for a price below the real one. Therefore, if the sale price accepted to acquire the apartment is 200,000 euros and the appraisal value calculated by the appraiser is 220,000 euros, the buyer will not have to allocate as many savings in this operation and You will not have problems when applying for a loan at the bank.

However, although this situation may be advantageous for the buyer, he should know that if he has bought the house below the real value, it is probable that the Treasury will demand a complementary settlement that reflects the difference between the Property Transfer Tax (ITP) that you have paid and the one that the Treasury considers you should have paid based on home value.

In the opposite case, when the sale price is higher than the appraised value, it can lead to problems for the buyer, since they will need more savings to be able to pay the entrance fee and that the banks finance a lower amount.


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