Appraisal
An appraisal is the official valuation of a property's price carried out by an accredited professional.
Detailed explanation
An accredited appraisal firm estimates the property's market value based on its location, condition, floor area and local comparables. It is the reference value the bank uses to grant the mortgage and calculate the LTV, and it lets you know whether you are buying below the real price.
Practical example
If a flat is bought for €90,000 and its appraisal is €130,000, the investor buys at a 30% discount to the appraised value.
When it matters
The appraisal matters to measure the real discount of an opportunity and to determine how much financing you can obtain.
At Arkos Investor
At Arkos Investor we compare the price of each asset with its appraisal so you can see the real discount to market value.