If you plan to take out a mortgage, a property appraisal is an essential part of the process of obtaining a loan. A property appraisal is done to determine its market value. This is necessary because banks require collateral for a mortgage, and real estate is the primary security. A professional real estate appraisal is carried out by an authorized real estate appraiser, who prepares a document, called an appraisal report. This document is an official confirmation of the value of the property under examination.

Cooperation with the appraiser

Cooperation with an appraiser is inevitable, since only he can make a reliable valuation of the property. The appraiser inspects the property, examines technical documentation and performs an analysis of the real estate market. Based on the information gathered, he issues an opinion on the value of the property. His task is to accurately value the property on which we want to take out a loan. This allows the bank to be sure that the value of the property is sufficient to cover the value of the loan. The appraiser is also a guarantor of security for the borrower, since his actions are responsible for ensuring that the borrower does not overpay for the property.

In Poland, the activities of real estate appraisers are regulated by the National Chamber of Real Estate Appraisers.

Do banks accept appraisers from outside?

Banks usually have their own appraisers with whom they cooperate. However, if a client wants to choose an appraiser on his or her own, most of the banks usually accept this option. The key is to optimize costs during the process, so if you are applying for a loan to more than one bank, it is worth using one external appraiser. This way we won’t duplicate the cost for the appraisal at each bank.

Banks that do not accept external valuation at the moment are BNP Paribas, Citi Handlowy, mBank and PKO BP.

How much does an appraisal report cost?

The cost of an appraisal report depends on many factors, such as the type and size of the property, its location and the complexity of the valuation. The average cost of an appraisal report for an apartment fluctuates around 450-800 PLN. An appraisal report for a house costs closer to PLN 1000-1400.

Does the report have an expiration date?

Yes, the appraisal report has a specific expiration date. Usually it is a period of 12 months. The exceptions are Citi Handlowy Bank and mBank, where the expiration date for this document is 6 months. After the expiration date of the document, you may need to refresh it or make a new one to get an up-to-date valuation of the property. This is important if you are considering the loan refinancing process.