The bank needs to know the home's actual value before granting the loan. This happens because, in case of default and eventual enforcement of the guarantee, the property is one of the main protection elements of the institution.

The evaluation is conducted by a real estate appraiser who analyzes different property and surrounding market characteristics.

Among the aspects considered may be location, area, condition, construction quality, property features, and prices of similar properties.

Why can evaluation be decisive?

Imagine you find a house for 250,000 euros and want to finance 90% of that value.

If the bank valuation is also 250,000 euros, the reference value for the loan will be this amount.

But now imagine the expert values the house at 230,000 euros.

In this case, the bank may consider the 230,000 euros as the property value for the financing ratio. Applying the 90% limit, the maximum reference financing would be 207,000 euros.

This means that the difference between the purchase price and the value considered by the bank can increase the amount the buyer needs to secure with own funds.

What can influence the appraisal value?

There is no single feature that determines the value assigned to the property. The expert considers different elements, such as:

Location and accessibility.

Area and characteristics of the housing.

Condition status.

Quality of finishes and equipment.

Property type.

Existence of garage, balcony, terrace or other relevant features.

Prices practiced in similar properties in the same area.

Market conditions.

Therefore, the price asked by the seller does not automatically determine the bank's appraisal value.

What if the evaluation is lower than the purchase price?

This is one of the situations that can most surprise someone buying a house.

When the appraisal is below the negotiated price, the buyer may need to increase the down payment to cover the difference.

Another option is to renegotiate the purchase price with the seller, if there is room for it.

Also, it may be possible to look for a different financing solution, depending on the client's profile, the property, and the institution.

The key is to understand this issue before taking on financial commitments that depend on a specific funding amount.

Can I challenge a review?

Yes. If you disagree with the result or the reasoning of the evaluation, you can submit a written complaint to the credit institution.

You can also request a second evaluation, with the costs of this evaluation borne by the client.

There is still the possibility to submit an evaluation previously done by another institution, as long as it meets the applicable requirements. Banco de Portugal indicates that the consumer can submit an appraisal report issued in less than six months by a registered expert, although there are specific conditions for its acceptance.

Who pays for the appraisal?

The cost of the evaluation depends on the institution and the operation. It is an expense associated with the credit process and must be confirmed in the price list or the documentation provided by the bank.

It is important to include this value in the total budget for the house purchase, along with the other costs associated with the loan and acquisition.

Can the buyer keep the report?

Yes. The credit institution must provide the customer with a copy of the appraisal report and other documents related to the appraisal within the time frame specified by the applicable rules.

Before proceeding to the loan:

A favorable review does not, on its own, mean the loan will be approved. The bank also analyzes income, expenses, other credits, professional situation, and the client's payment capacity.

Therefore, it's ideal to analyze the property value and your financial capacity at the same time.

Make a simulation

Want to know how much you can finance to buy a house and what the payment's impact on your budget will be?

Simulate your housing loan and analyze the available options for your profile.

Is bank evaluation mandatory?

When there is a housing loan with a property as collateral, the appraisal is an essential part of the financing process.

Can the bank finance more than the appraisal value?

Poupança no Minuto is subject to applicable limits and solvency assessment. Generally, for own and permanent housing, the credit should not exceed 90% of the lower of the purchase price or the appraisal value.

Who chooses the appraiser?

The evaluation is conducted by an appraiser who meets the applicable requirements for the activity.

Can I request a second appraisal?

Yes. The costs of the second evaluation are borne by the client.

Does a higher rating ensure credit approval?

No. The bank also evaluates the client's financial capacity and may reject the financing even with an adequate assessment.

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