When someone buys a property, they usually focus on very personal aspects: the renovation, terrace, views, number of bedrooms, location, layout, or simply the feeling it gives when entering.<\/p>\n\n\n\n
And that\u2019s normal. Each buyer values different things more than others. But if you\u2019re buying with a mortgage, there\u2019s a reality you must be very clear about: the bank doesn\u2019t look only at the price you agree with the seller. It also considers the value a professional valuer can justify.<\/p>\n\n\n\n
That difference can be decisive. You may think a property is worth a price because you like it, because there\u2019s limited supply, or because the seller won\u2019t negotiate. But to grant a mortgage, the lender needs a valuation carried out according to technical and regulatory criteria.<\/p>\n\n\n\n
And if the valuation comes in below the purchase price, the operation can become complicated. In this article, we explain which factors most influence a property valuation, why some weigh more than others, and what you should check before reserving a house.<\/p>\n\n\n\n
A mortgage valuation is a technical assessment of the property used to determine its value as security for a mortgage loan.<\/p>\n\n\n\n
It is not the buyer's opinion. It is not the price the seller asks for. It is not simply what appears on a property portal. Nor is it only 'what is being paid in the area'.<\/p>\n\n\n\n
The valuation must technically justify the property's value taking into account its characteristics, documentation, condition, location and comparable market data.<\/p>\n\n\n\n
In Spain, mortgage valuations are carried out in accordance with Order ECO\/805\/2003, dated 27 March, which regulates the valuation standards of real estate and certain rights for specific financial purposes.<\/p>\n\n\n\n
This regulation was amended by Order ECM\/599\/2025, dated 10 June, published in the BOE on 12 June 2025 and effective from 12 August 2025.<\/p>\n\n\n\n
The 2025 reform strengthens important aspects such as the documentation used by the valuer, traceability of comparables, justification of measurements, the energy efficiency certificate and the principle of sustainability.<\/p>\n\n\n\n
Important: the regulation does not publish an official ranking of factors from 10 to 1. What it does establish is what the valuer must review and justify. Therefore, the ranking in this article is a practical ordering based on the criteria that usually have the greatest influence on a mortgage valuation of a home.<\/p>\n\n\n\n Energy efficiency is increasingly important in assessing a property. The energy certificate, insulation, window type, heating and cooling systems, estimated consumption and emissions can influence the perception and value of the property.<\/p>\n\n\n\n Furthermore, with the 2025 regulatory update, the energy efficiency certificate gains importance as documentation within the valuation process.<\/p>\n\n\n\n However, in a standard property, energy typically does not weigh more than other factors such as location, size, building or market comparables. That is why it appears at number 10: it matters more and more but is usually not the factor that most determines the final value.<\/p>\n\n\n\n The condition of the property clearly influences the valuation. A renovated, well-maintained house with updated installations, good bathrooms, a modern kitchen, efficient windows and sound materials may be valued higher than a similar property needing a full refurbishment.<\/p>\n\n\n\n However, a common mistake is believing that all money invested in renovation is automatically recovered in the valuation. This is not always the case.<\/p>\n\n\n\n The valuer does not assess only the cost of the work but the added value that improvement brings to the property within its market. Renovation adds value, but does not replace stronger factors such as location, size or comparable market data.<\/p>\n\n\n\n Floor level also affects value, but not always in the same way. A high floor with a lift is generally valued higher because it usually has more light, better views, less street noise and more privacy.<\/p>\n\n\n\n But if the building has no lift, the floor level can significantly detract. A ground floor without a lift is not the same as a fourth floor without a lift.<\/p>\n\n\n\n Also, ground-floor flats can be penalised due to less privacy, less light, more noise or a greater sense of insecurity, although in some cases a courtyard or independent access can compensate for some of these drawbacks.<\/p>\n\n\n\n Orientation, natural light, whether the property faces inwards or outwards, and the views can considerably influence the valuation.<\/p>\n\n\n\n A bright property tends to have better perception, greater habitability and more commercial appeal. Good views can make a significant difference: sea, park, square, mountain, heritage area or unobstructed views.<\/p>\n\n\n\n However, views do not carry equal weight in all properties. For a beach property, a penthouse or premium home, views may be very relevant. In other cases, they add value but generally do not outweigh size, location or comparables.<\/p>\n\n\n\n Extras can make a clear difference. Garage, storage, terrace, patio, pool, garden or communal areas can increase the attraction of a property.<\/p>\n\n\n\n The key is whether such extras are scarce in that area. A garage can be very valuable in a city centre where parking is difficult. A terrace can carry significant weight in neighbourhoods with very few homes with outdoor space.<\/p>\n\n\n\n That\u2019s why extras are not valued in isolation: they are analysed within the specific market of that property.<\/p>\n\n\n\n Layout is one of the most underestimated factors when buying a property.<\/p>\n\n\n\n Two homes may have the same square metres yet function completely differently. 90 well-used square metres are not worth the same as 90 poorly distributed.<\/p>\n\n\n\n A property with long corridors, small rooms, unused spaces, a kitchen separated from logical dining areas or poorly placed bedrooms may have a lower valuation than another property with the same size but much more functional.<\/p>\n\n\n\n The valuation does not assess only the interior of the property. It also assesses the building.<\/p>\n\n\n\n Factors such as lift, fa\u00e7ade, age, accessibility, structure, state of repair, common elements, community fees, pending levies, ITE or IEE reports, and urban planning status influence value.<\/p>\n\n\n\n A property may be extensively refurbished inside, but if the building has major issues, this can affect the value. Conversely, a property needing improvement inside an excellent building may have a more stable valuation.<\/p>\n\n\n\n Size is one of the most important factors in a valuation. It seems obvious, but many issues arise here.<\/p>\n\n\n\n Measurements do not always match between the Cadastre, Land Registry, deed, commercial listing, actual measurement, usable area, built area or area including common elements.<\/p>\n\n\n\n Regulations require justifying the surface area used in the valuation, so the valuer cannot simply accept any advertised figure. If the property has less valuated surface than you expected, the valuation may come in below your anticipation.<\/p>\n\n\n\n This is one of the most important and least understood points by buyers.<\/p>\n\n\n\n A property may be excellent, renovated, with a terrace, garage, good orientation and excellent layout. But if the valuer cannot find enough comparables to justify that value, the valuation may fall below the sale price.<\/p>\n\n\n\n Using the comparison method, the valuer analyses similar properties in the area and adjusts for differences: location, size, condition, floor, lift, age, garage, terrace, quality and building. The value must be justifiable with comparable data.<\/p>\n\n\n\n Location remains the most decisive factor in a property\u2019s value.<\/p>\n\n\n\n The same property can be worth much more or much less simply by changing location. Factors include city, neighbourhood, street, services, transport, schools, green areas, noise, safety, demand, scarcity of supply, local income levels and market liquidity.<\/p>\n\n\n\n You can renovate a house, improve its efficiency or reconfigure spaces. But you cannot move it. That is why location is normally the factor with the greatest weight in a valuation.<\/p>\n\n\n\n Because the mortgage is linked to the valuation value of the property. If the valuation is lower than expected, the bank may limit the financing and require you to put in more money than planned.<\/p>\n\n\n\n For example, if you buy a property for \u20ac250,000 but the valuation is \u20ac220,000, the lender may calculate the financing based on a value lower than you agreed.<\/p>\n\n\n\n And that can directly affect the viability of the purchase. That is why it is so important to assess valuation risk before signing reservation contracts or putting down a deposit.<\/p>\n\n\n\n \u2713 <\/strong>If the price aligns with the area.<\/p>\n\n\n\n \u2713 <\/strong>If there are enough comparables.<\/p>\n\n\n\n \u2713 <\/strong>If the measurements reasonably match between Cadastre, Registry and deed.<\/p>\n\n\n\n \u2713 <\/strong>If the property is properly legalised.<\/p>\n\n\n\n \u2713 <\/strong>If the building has any relevant issues.<\/p>\n\n\n\n \u2713 <\/strong>If there are any encumbrances, restrictions or urban issues that could affect it.<\/p>\n\n\n\n \u2713 <\/strong>If the valuation could come in below the purchase price.<\/p>\n\n\n\n \u2713 <\/strong>If your mortgage would still be viable even with a more conservative valuation.<\/p>\n\n\n\n At Hipotea, we analyse the purchase before you take an important step. We help you assess whether the property price is reasonable, if there is risk of a low valuation, and whether the purchase fits with the mortgage you need.<\/p>\n\n\n\n This is not about 'forcing' a valuation. It is about anticipating risks, reviewing documentation and making decisions with information.<\/p>\n\n\n\n Buying a property is one of the most important financial decisions of your life. And a low valuation can complicate your purchase. That is why, before reserving, it is advisable to ensure that the property not only appeals to you, but also fits valuation and mortgage criteria.<\/p>\n\n\n\n The price of a property does not depend only on what the seller asks nor on what the buyer is willing to pay.<\/p>\n\n\n\n When buying with a mortgage, the value a valuer can justify also matters. And that value depends on many factors: energy, condition, floor level, light, extras, layout, building, size, comparables and, above all, location.<\/p>\n\n\n\n Therefore, before reserving a property, it is important to analyse whether the price fits the market reality and the mortgage you need.<\/p>\n\n\n\nKey idea<\/strong> A valuation does not depend only on the condition of the property. It depends on its size, building, location, documentation and what the comparable market allows to be justified.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Ranking: the 10 factors that most influence a home valuation<\/h2>\n\n\n\n
10. Energy: energy efficiency, insulation and consumption<\/h3>\n\n\n\n
9. Condition and renovation<\/h3>\n\n\n\n
8. Floor level of the property<\/h3>\n\n\n\n
7. Light and views<\/h3>\n\n\n\n
6. Extras: garage, storage room, terrace, patio, pool or communal areas<\/h3>\n\n\n\n
5. Layout: not all square metres are equal<\/h3>\n\n\n\n
4. Building, community and urban planning situation<\/h3>\n\n\n\n
3. Size: actual, registry, cadastral and verified surface area<\/h3>\n\n\n\n
2. Market comparables<\/h3>\n\n\n\n
1. Location: the most influential factor<\/h3>\n\n\n\n
Summary of the ranking<\/h2>\n\n\n\n
Position<\/strong><\/td> Factor<\/strong><\/td> Practical interpretation<\/strong><\/td><\/tr> 10<\/strong><\/td> Energy<\/td> Increasingly important but generally not the main value determinant.<\/td><\/tr> 9<\/strong><\/td> Condition<\/td> Renovations add value but are not always fully recovered in valuation.<\/td><\/tr> 8<\/strong><\/td> Floor level<\/td> Can add or subtract value depending on lift, floor and market.<\/td><\/tr> 7<\/strong><\/td> Light and views<\/td> Very relevant for certain properties and areas.<\/td><\/tr> 6<\/strong><\/td> Extras<\/td> Garage, terrace or storage room weigh more if scarce.<\/td><\/tr> 5<\/strong><\/td> Layout<\/td> Well-utilised space is worth more than poorly arranged space.<\/td><\/tr> 4<\/strong><\/td> Building<\/td> The state of the building and legal status can greatly affect valuation.<\/td><\/tr> 3<\/strong><\/td> Size<\/td> Surface area is an essential basis for value.<\/td><\/tr> 2<\/strong><\/td> Comparables<\/td> Without sufficient evidence, value may not be justifiable.<\/td><\/tr> 1<\/strong><\/td> Location<\/td> Usually the most decisive factor.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Why a low valuation can complicate the purchase<\/h2>\n\n\n\n
What to check before reserving a property<\/h2>\n\n\n\n
Hipotea advice<\/strong> The worst moment to discover a property does not fit due to valuation is after signing reservation contracts. Before reserving, it is advisable to pre-value and review the purchase with mortgage expertise.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Hipotea helps you pre-value before reserving<\/h2>\n\n\n\n
Conclusion<\/h2>\n\n\n\n