“They are half of what they should be”

Behind the signing of a mortgage to buy a house there is usually a real estate agent involved in the search for the home and a bank manager, who processes the granting of the loan. On a less visible level, the figure of the appraiser, who is responsible for valuing the home to determine the maximum financeable amount. The Spanish Association of Mortgage Appraisers (AETH) denounces that these last professionals work under certain conditions of “precariousness” in the face of which they have decided to call a arrest They warn that it will last up to four weeks.

The appraisers began their mobilization last Monday. One of their main complaints is the increase in the fees they charge for each appraisal. They denounce that The rates they receive have been practically frozen since 2008 and in some cases they represent only 20% of what the end client pays for the appraisal. “In recent years, rates have not only not gone up, but in some cases they have actually gone down and right now the gap with the CPI is tremendous,” he explains to 20 minutes the president of the AETH, Francisco Riaza, who estimates that the current remuneration “is half of what it should be” and adds that the technical and management burden of appraisals is increasing.

To reverse this situation, the AETH proposes setting minimum rates linked to the real cost of the reports and which are periodically updated with the CPI and can also be adjusted to regulatory or operational changes. They propose as a reference some amounts that allow reaching an average annual remuneration of around 30,000 euros grosssince they currently claim that it is common not to even reach the minimum wage. They also ask that payments be made within a maximum period of one month, compensation for travel and clarity with fees from the beginning.

On these bases, the AETH demands that the employers of appraisal companies a sectoral Framework Agreement to guarantee real rates, professional independence and system stability. They explain that it has been two years since they have submitted this request to the Spanish Association of Value Analysis (AEV) and the Professional Association of Valuation Companies (Atasa), although no negotiations have been opened because the business groups claim to be unable to respond to them. “They tell us that they do not have the legal capacity to reach any sectoral agreement and they refer us individually to each of the 31 appraisal companies in the market,” denounces Riaza, who also demands the creation of a mixed commission of appraisers and companies.

The model under which the majority of appraisers work for appraisal companies is based on the figure of the external freelance collaborator, who does not receive a fixed salary but is paid for each appraisal. The AETH indicates that this system precisely makes it difficult to take stock of the extent of the strike in the first days of the call, although They suggest that the follow-up could be around 80% and they are convinced that it will affect practically all mortgage appraisals channeled through approved companies, especially those commissioned by banks and large portfolios.

Without making mortgages more expensive

The association of appraisers warns that the mobilization can slow down the granting of mortgages and generate significant delays in the signing of loans, although they clarify that the adjustment of the fees they demand does not have to translate into an increase in the price of appraisals, given that they see room to eliminate intermediate commissions between banks and appraisers. “It is not intended to make mortgages unjustifiably more expensive.but to align prices with the real costs of appraisals, eliminate improper commissions and guarantee that whoever does the work does not continue doing it at a loss,” emphasizes the statement issued regarding the strike.

The AETH reminds us that mortgage appraisals are not the right of banks, but of citizens, so anyone who is going to buy a home, for example, can directly order a report and use it with the financial institution of their choice, without being forced to accept the appraisal proposed by the bank. In fact, as they explain, one of the objectives of the strike is also protect that valuations are made independently —guaranteeing, for example, the right to reject non-viable assignments—, as well as with technical rigor and realistic deadlines, to minimize errors.

They believe that, if the current situation continues, the “loss of quality and reliability” of appraisals. “When we visit an apartment, sometimes they ask us what the price is, but that’s just the tip of the iceberg. Behind it there is field work: you have to make the plan, confirm the surfaces, certify that the property corresponds to the property title, check that it complies with urban planning regulations…”, explains the president of the AETH about the work carried out by the appraisers, who he denounces that they are asked for reports ready in 48 hours. “Without independent and quality appraisals there are no safe mortgages or reliable real estate market,” highlights the AETH statement.