Official Appraisals, Market Valuations, and Asking Prices: What is the Difference (and Which Do You Need?)
This confusion costs money every day. Owners who set their selling price based on a bank appraisal. Heirs who divide assets using a free portal valuation. Buyers who discover at the notary that their figure is invalid for the Tax Agency (Hacienda). Let's clear this up.
The comparison, at a glance
| Official Appraisal | Market Valuation | Asking Price | |
|---|---|---|---|
| What it is | Regulated technical report | Commercial study | Strategic decision |
| Who signs it | Certified appraiser or appraisal firm | Technician, expert, or agent | The owner, with advice |
| Applicable regulation | Order ECO/805/2003 | None | None |
| Legal validity | Yes: banks, courts, Tax Agency, inheritance | No | No |
| Format | Extensive report, with annexes and visit | Brief report or dossier | A figure |
| Result | A specific figure | A price range | A listing number |
| Property visit | Mandatory (with exceptions) | Recommended | — |
| Validity | 6 months (mortgage use) | Indicative, 2-3 months | Reviewable |
| Indicative cost | €300-600 for an average home | €0-250 | — |
| Turnaround time | 5-15 days | 2-7 days | Immediate |
| Purpose | Mortgage, inheritance, divorce, trial, tax appeal | To guide a sale or purchase | To attract the right buyer |
What an official appraisal is and what regulates it
An official appraisal is a valuation report issued in accordance with the Order ECO/805/2003, which establishes the valuation rules for real estate for specific financial purposes. It is signed by a certified professional or an appraisal company registered with the Bank of Spain.
What makes it different is not the figure: it is the regulated procedure. The order establishes which methods can be applied, which checks are mandatory, what documentation must be included, and how each adjustment is justified. That is why it holds up before a judge and why the bank will not accept anything else.
An appraisal report includes, at a minimum: registry and cadastral identification of the property, verification of surfaces, state of conservation, urban planning status, comparable witnesses used, method applied, adjustments made, conditions and warnings, and a photo report.
When you mandatorily need one: mortgage approval, judicial proceedings, inheritance valuation involving conflict, foreclosures, and as evidence in appeals before the Tax Administration.
What a market valuation is and what it lacks
A market valuation (sometimes called a comparative market analysis or CMA) answers the commercial question: how much is this selling for today, on this street?
Methodologically it can be excellent — in fact, to set a selling price it is usually more useful than an appraisal, because it relies on the real and current market, not on a procedure designed for mortgage guarantees. What it lacks is regulatory coverage: it has no legal validity. It is of no use to the bank, to a judge, or to the Tax Agency.
Its honest result is a range, not a figure. If someone gives you a market valuation with a number exact to the euro and without conditions, be wary.
Why automatic valuations on portals fail in the Axarquía
Automatic valuation models (AVMs) work reasonably well in homogeneous urban fabrics. In the Axarquía, they fail systematically, and always for the same reasons:
- The micro-zone changes everything. Two homes separated by three hundred metres can differ by 30% due to the distance to the beach, road access, or views.
- Sea views are not in any database. The algorithm does not know if your terrace faces the sea or an internal courtyard. And that factor can be worth 20%.
- The stock is heterogeneous. Farmhouses (cortijos), townhouses, tourist apartments, villas with plots, and new builds coexist within the same postcode.
- Cadastral surfaces are outdated. Unreported extensions, closed porches, finished basements. The algorithm values what the Cadastre says, not what is actually there.
- They work with listing prices, not transaction prices. And listing prices are systematically higher.
They are useful for an initial orientation. They are not useful for deciding a price, much less for dividing an inheritance.
When you need each one
| Situation | What you need |
|---|---|
| Applying for a mortgage | Official appraisal (required by the bank) |
| Putting your house on the market | Market valuation → asking price |
| Dividing an inheritance without conflict | Documented market valuation |
| Dividing an inheritance with conflict | Appraisal or expert report |
| Divorce and division of matrimonial assets | Expert valuation report |
| Partition of common property / termination of condominium | Expert report |
| Appealing the reference value before the Tax Agency | Official appraisal or expert report |
| Judicial proceedings of any kind | Expert report ratifiable in court |
| Buying and wanting to know if the price is reasonable | Market valuation |
| Claims for hidden defects | Expert report |
Practical rule: if there is a third party who can dispute the figure — a bank, a judge, a sibling, the Tax Agency — you need a signed report. If it only serves you to make a decision, a market valuation is enough.
Why your appraisal says €280,000 and your neighbour sold for €305,000
It is the question I am asked most often, and there is no contradiction. The usual reasons:
1. The mortgage appraisal is prudent by design. Its purpose is to determine the guarantee value of a loan. The regulations require prudence because the bank needs to know how much it would recover in a foreclosure, not how much an enthusiastic buyer would pay.
2. The witnesses are different. The appraisal uses comparable properties homogenized according to a regulated methodology, with mandatory exclusions. The real market incorporates factors that the methodology does not capture well: punctual scarcity, a buyer with urgency, or two interested parties at the same time.
3. The date matters. An appraisal from four months ago in a market that is rising by 7.6% year-on-year is, mechanically, 2.5% outdated.
4. Your neighbour did not sell exactly the same thing. Different floor, different orientation, a renovation you cannot see from the outside, or a parking space included in the price.
5. And sometimes, your neighbour simply sold well. Or the buyer overpaid. An isolated operation is not the market; it is a point in a cloud.
Frequently asked questions
Is a bank appraisal useful for setting a selling price?
As a reference, yes; as a price, no. The mortgage appraisal is prepared with prudence criteria oriented towards the loan guarantee and usually falls below the price the market pays. Use it as the floor of your range, not as an asking price.
How much does an official appraisal cost in Málaga?
Between €300 and €600 for an average home, depending on surface area, type, and complexity. Rustic properties, unique homes, or those with registry discrepancies increase the cost.
How long is an appraisal valid?
For mortgage purposes, six months from its issuance. For other purposes, there is no single legal deadline, but in a market that moves like the Costa del Sol, it is advisable to update a report older than six months.
Can I use a free valuation from a portal?
To get an initial idea, yes. To decide a selling price, divide an inheritance, or argue with the Tax Agency, no. Automatic valuers do not know your views, your orientation, your state of conservation, or your real surfaces, and they work with listing prices instead of deed prices.
Can the same person do the appraisal and sell the house?
It is advisable to separate the functions or, at the very least, declare the dual role with transparency. A valuation report gains credibility when the signer has no economic interest in the figure. When I act as an expert witness, my obligation is to the accuracy of the value, not the sale.
Don't know which one you need?
Tell me your situation — sale, inheritance, divorce, mortgage, or tax appeal — and I will tell you which document you need and which you do not. Málaga city and Axarquía.
Fabiana Gastaudo is a real estate judicial expert and specialist in property valuation, operating in Málaga city and the Axarquía region.
Sources: Order ECO/805/2003, of 27 March, on valuation standards for real estate and certain rights for financial purposes · idealista, Housing price report for sale — province of Málaga, July 2026.
Interested in reading more? How a home is truly valued: the methods an appraiser uses · Real estate judicial expert in Málaga: what they do and when you need one · Property valuation in inheritance, divorce, or partition of common property