Property valuation: What it is and how to do it?

Property valuation is a crucial process in various situations, such as buying, selling, transferring mortgage credit, or even in inheritance cases where heirs do not reach an agreement. This procedure is essential to determine the market value of a property, ensuring a fair price for both parties involved.

It is a meticulous process that requires the analysis of various factors such as location, condition, type, and more. While online platforms offer property value simulations, these are not legally valid for credit or formal transactions. To ensure accuracy and legal validity, it is necessary to have the valuation carried out by a property expert, a professional who is legally certified to assess the true value of a property. This professional must be registered with the Portuguese Securities Market Commission (CMVM) and must follow specific legal requirements outlined by Law Decree 153/2015. The property expert will visit the property, take measurements, capture photographs, and review all relevant documentation, such as the property tax booklet and land registry certificate. Using these elements, they will prepare a detailed report that outlines the estimated market value of the property.

While the market value is determined by the expert, there is also the Tax Property Value (VPT), assigned by the Tax Authority for calculating the Municipal Property Tax (IMI). This value is often different from the market value as it takes into account a set of coefficients defined by the Tax Authority. While it is possible to request a revaluation of the VPT, this can only be done every three years.

If you're navigating the process of buying, selling, or simply need assistance in understanding the value of a property, Match can guide you through the necessary steps and help you connect with the right professionals for a precise and reliable valuation.

Contact us to learn how we can assist you!