How a property is truly valued: the methods used by a surveyor (and how to apply them to your home)
This article opens the black box. Not so that you stop needing a surveyor, but so that you know how to judge whether the person in front of you is doing their job properly.
Valuation methods, in a table
The Order ECO/805/2003 recognises four methods. For residential property, the first two are primarily used.
| Method | What it consists of | When it is used |
|---|---|---|
| Comparison | Real transactions of similar properties are compared and differences are adjusted | Property with an active market. It is the primary method. |
| Cost (or replacement) | Land value + construction cost new − depreciation | New builds, unique buildings, properties without comparables |
| Income capitalization | Future income from the property is discounted to the present | Rented properties, commercial units, VUT, investment assets |
| Residual | Based on the value of the finished product minus costs and profit | Land and plots in development |
When a market exists, the comparison method rules. The others are used as a contrast or when the first is not applicable.
Comparison method, step by step
Step 1. Properly identify the property
Before comparing anything, you have to know exactly what is being valued. And here is where the first real problem appears, especially in the Axarquía: registered surface area, cadastral surface area and actual surface area almost never match.
Three sources are checked: the property register note (nota simple), the cadastral record, and measurement during the visit. If there is a discrepancy, it is documented and valued based on the actual surface area, noting the difference. A report that does not mention the discrepancy is a report that has not visited the property.
Step 2. Delimit the homogeneous zone
It is not the municipality. It is the environment with the same market behaviour: same dominant typology, same level of services, same accessibility, same relationship with the beach or the town centre.
In Torre del Mar, the promenade and the interior area starting from the main avenue are two different markets. Treating them as one easily skews the valuation by 15%.
Step 3. Select the witnesses
Six to ten comparable properties are sought. Preferably closed transactions, not listings: the asking price is an aspiration, the registered price is a fact.
Comparability criteria, in order of importance:
- Same homogeneous zone
- Same typology (flat, villa, town house, cortijo)
- Similar surface area (±20%)
- Similar age and condition
- Recent transaction date (ideally less than 12 months)
Step 4. Discard witnesses that contaminate
These are eliminated without question:
- New construction (another market, with different VAT and guarantees)
- Sales between relatives or linked parties
- Auctions and foreclosures
- Properties with liens, occupancy or litigation
- Listings published for more than six months without selling
- Operations with special conditions (swaps, dations)
That sixth point is key and almost no one applies it: a flat that has been listed for eight months at €340,000 is not evidence that the area is worth €340,000. It is evidence that €340,000 is too much.
Step 5. Homogenise
No witness is identical to the property. Differences are corrected by applying coefficients. This is the technical heart of the work and where a serious report separates itself from a mere estimate.
Real example of a homogenisation table:
| Witness | Gross €/m² | Floor | Condition | Views | Surface area | Homogenised €/m² |
|---|---|---|---|---|---|---|
| T1 | 3,520 | −4% | 0% | −8% | +2% | 3,169 |
| T2 | 3,180 | +3% | +6% | 0% | 0% | 3,466 |
| T3 | 3,640 | 0% | −5% | −12% | −3% | 3,058 |
| T4 | 3,290 | +5% | 0% | 0% | +1% | 3,487 |
| T5 | 3,410 | 0% | +4% | −5% | 0% | 3,376 |
| T6 | 3,250 | +2% | +7% | 0% | −2% | 3,478 |
Homogenised average: €3,339/m². Standard deviation: €174/m². Over 92 m², that gives a range of €291,000 – €323,000.
Notice something: the gross prices ranged from €3,180 to €3,640/m². After homogenising, from €3,058 to €3,487. Homogenisation does not eliminate dispersion; it explains it.
Step 6. Apply and contrast
The homogenised average is applied to the property's surface area and contrasted with the cost method. If both differ significantly, it must be explained why — usually indicating particularly expensive or cheap land, or a building with problems.
Step 7. Issue the range, with conditions
The report ends with a value and its warnings: surface discrepancies, unverified urban status, registered liens, unlicensed works. The conditions are part of the value, not a decorative annex.
Cost method: when is it used
Land value + replacement cost of construction − physical and functional depreciation.
It is used when there is no comparable market: new construction, unique buildings, isolated farmhouses, properties with a specific purpose. It also always serves as a contrast to the comparison method.
Its weak point: depreciation is the most subjective parameter of the entire property valuation. Two experts can differ by 15% just on that adjustment.
Income capitalization method: for rentals and tourist accommodation
The net income generated by the property is projected and discounted to present value at a rate that reflects risk.
It is the relevant method for leased properties, commercial premises, and tourist use properties (VUT). In the Axarquía and the Costa del Sol, it carries significant weight, because a large part of the stock has declared tourist performance.
Important warning: to value a VUT, one must first verify that the dwelling meets the requirements of the current Andalusian regulatory framework and that its registration is in order. A tourist license that cannot be maintained does not provide the value the owner attributes to it.
The variables that move value the most in the Axarquía
Ordered by observed real impact in the region:
| Variable | Indicative impact |
|---|---|
| Unobstructed sea views | +8% to +20% |
| Absence of lift on 3rd floor or higher | −8% to −15% |
| Condition in need of total renovation | −12% to −20% |
| Large terrace or solarium | +5% to +12% |
| Distance to beach (every 500m) | −3% to −7% |
| Parking space included | +4% to +8% |
| Poor road access (old town, farmhouses) | −5% to −15% |
| North orientation without direct sun | −4% to −8% |
| Communal swimming pool | +2% to +5% |
| Noise (main road, nightlife) | −3% to −10% |
These ranges are indicative and vary by micro-zone. On the beachfront, the weight of the views skyrockets; in the interior of the region, road access and water carry much more weight.
The five things owners think add value and do not
1. The renovation you did fifteen years ago. A 2010 kitchen is not a new kitchen. It is considered state of conservation, not an improvement.
2. Expensive materials based on personal taste. Dark marbles, coloured joinery, designer tiles. If the average buyer is going to change them, they do not add value: they subtract it.
3. The price you paid. It is not market data. It is your history.
4. The furniture. Except for the kitchen, built-in wardrobes and fixed elements, the furniture has minimal residual value in the valuation, no matter how good it is.
5. What you need to buy the next house. It is your financial constraint, not a characteristic of the property.
And one that does add more than people think: documented records in order. A property with matching surfaces, no liens and legalised works sells faster and with less discount.
Complete example: flat in Torre del Mar
Property: 92 m² built, 2 bedrooms, 4th floor with lift, 12 m² terrace, partial sea views, good condition without renovation, no garage.
| Concept | Value |
|---|---|
| Witnesses used | 6 closed transactions, last 11 months |
| Mean gross €/m² of witnesses | €3,382/m² |
| Homogenised €/m² | €3,339/m² |
| Standard deviation | €174/m² |
| Computable surface area | 92 m² + 12 m² terrace at 30% = 95.6 m² |
| Central value | €319,200 |
| Market value range | €305,000 – €333,000 |
| Contrast cost method | €311,000 (coherent) |
| Recommended starting price | €325,000 |
Note on the terrace: outdoor spaces do not count at 100%. The usual proportion ranges from 25% to 50% depending on use, orientation and quality. Here, 30% has been applied.
Frequently Asked Questions
How many comparable witnesses are needed?
Between six and ten for a property with an active market. Fewer than four makes it impossible to detect outliers. More than twelve rarely adds precision and usually means the homogeneous zone has been expanded too far.
How do the floor level and lift affect value?
With a lift, a higher floor usually adds between 3% and 6% due to light and lack of noise. Without a lift, from the third floor upwards, the impact is reversed and subtracts between 8% and 15%. It is one of the most decisive variables in old buildings in the Axarquía.
Is a renovation recovered upon sale?
Partially, and it depends on the type. Interventions that correct obvious deficiencies are usually recovered almost entirely. Renovations based on personal taste and high-cost kitchens are rarely fully recovered. Average recovery is between 50% and 80% of what was invested.
Why do two valuations of the same house differ?
For three legitimate reasons: different witnesses, different homogenisation coefficients, and different dates in a moving market. A difference of up to 10% between two serious reports is normal. Above 15%, it is worth reviewing the methodology of one of the two.
Can I value my own house?
You can make a reasonable estimate by following steps 1 to 4. Homogenisation is where you need technical criteria and access to closed transactions. And if the value is going to be discussed with a bank, a judge, a co-heir or the Tax Agency, you need a signed report.
Do you want the full report for your property?
I prepare valuation reports with real witnesses, documented homogenisation tables, and a justified range. For sale, inheritance, divorce or tax challenge. Málaga city and the entire Axarquía.
Fabiana Gastaudo is a judicial property expert and specialist in real estate valuation in Málaga and the Axarquía. She prepares expert reports for judicial proceedings and valuations for sales, inheritance and liquidation of matrimonial property.
Sources: Order ECO/805/2003, of 27 March, on valuation standards for real estate · idealista, Report on property prices for sale — province of Málaga, July 2026.
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