What is an appraisal?

Appraisal, understood to be an independent expert opinion, is always valuable and especially necessary in a sector such as real estate, given the current economic context.

The real estate market is not a perfect market, due to which real estate appraisers must be independent professionals with exacting judgement and criteria. For this reason, an appraisal carried out by an appraisal company such as TINSA combines the professional competence and qualifications of its appraisers with the potential of an organisation which has been providing appraisal services since 1985.

What is it for?

One of the peculiarities of the real estate market is its geographical and functional sectorisation. There are local markets that behave differently, depending on their location and the uses considered: housing for first or second homes, commercial premises at street level or in shopping centres, offices, factory premises, agricultural land, etc. This makes it increasingly difficult to stay abreast of all the market situations that may arise, which requires a degree of specialisation only within the reach of a competent professional backed by a renowned appraisal company.

In addition to bringing transparency to commercial relationships, the appraisals carried out by an appraisal company constitute a mandatory document for specific purposes, including those defined within the scope of application of Article 2 of ORDER ECO/805/2003:

• Mortgage credit or loan guarantee.
• Hedging of technical provisions of insurance companies.
• Determination of the assets of the real estate collective investment institutions.
• Determination of the real estate assets of Pension Funds.

Why is it useful to me?

An appraisal carried out by an appraisal company, in addition to being an independent expert opinion, always constitutes a document providing support and guarantee whenever the monetary valuation of a property is required.

Among these situations, the following stand out:

•  Purchase and sale management.
•  Mergers.
•  Appraisal of real estate assets.
•  Judicial proceedings.
•  Expropriations.
•  Division of wealth in divorces.
•  Inheritances.

What advantages does it have?

• Being qualified as an authorised appraisal company in more than twenty Spanish financial institutions.
• Nation-wide coverage, with 32 offices and over 1,400 appraisers.
• Being backed by a technical appraisal control system and the support of a structure that unifies and homogenises the product.

What appraisal methodology and procedure does TINSA follow?

Our appraisal methodology is included in two fundamental documents:

• ORDER ECO/805/2003, of 27 March, on property appraisal regulations and certain rights for specific financial purposes. National regulations of mandatory application for certain purposes which define the verifications and methods most commonly used in appraisals.
• International valuation standards, now in its eighth edition (IVS-2008). International regulation formulated and published world-wide by the International Valuation Standards Council (IVSC) and which constitutes a common international framework.

Although both regulations represent widely accepted appraisal principles, on certain occasions outside of these legal frameworks, and taking appraisal purposes into account, other criteria and methods may be used, such as cadastral appraisal, expropriation appraisal, appraisal based on specific assumptions in judicial appraisals and others.

Our appraisals procedure guarantees that, in addition to the work carried out by the appraiser in the field and individually, these are carried out under the technical and meticulous supervision of our control appraisers.