Bank Property Valuation

What Is It?

The Bank Property Valuation (Peritagem Bancária) is an inspection carried out by an independent expert — typically an engineer or architect — appointed by the bank to determine the property’s market value.

Banks do not base lending decisions on the agreed purchase price, but rather on this independent valuation.

What Is It For / Why Is It Important?

Determining the Loan Amount
Banks generally finance up to 90% of the lower value between:

• the purchase price, and

• the valuation result.

Example:
If the agreed price is €200,000 but the valuation comes in at €180,000, financing will be calculated on €180,000 — not the purchase price.

Bank Security
The valuation ensures that, in case of default, the property represents sufficient collateral to cover the outstanding debt.

Property Assessment
The expert verifies areas, finishes, location, overall condition, and checks for illegal alterations or structural concerns.

How Does It Work?

Requested by the Bank
The buyer does not arrange this directly. After mortgage pre-approval, the bank appoints an external valuation company.

On-Site Visit
The valuer schedules a visit with the owner or real estate agent to measure the property and collect photographic and technical information.

What Does It Cost?

Valuation Fee (Comissão de Avaliação)
Typically between €230 and €300, plus Stamp Duty.

Who Pays?
The buyer pays this fee to the bank, even if the mortgage is ultimately refused.

Validity

The valuation report is usually valid for 6 months.

If completion takes longer, the bank may require a new valuation — and an additional fee.

The Risk of a Low Valuation

If the valuation is lower than the agreed purchase price, the buyer must provide additional own funds to cover the difference, as the bank will reduce the financing amount accordingly.