{"id":185321,"date":"2025-08-18T10:35:00","date_gmt":"2025-08-18T08:35:00","guid":{"rendered":"https:\/\/gesvalt.es\/?p=185321"},"modified":"2025-11-12T11:15:10","modified_gmt":"2025-11-12T11:15:10","slug":"what-are-the-witnesses-in-a-real-estate-valuation-and-how-to-choose-them","status":"publish","type":"post","link":"https:\/\/gesvalt.es\/en\/blog\/que-son-los-testigos-en-una-tasacion-inmobiliaria-y-como-elegirlos\/","title":{"rendered":"What are the witnesses in a real estate valuation and how to choose them?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In the real estate sector, the <strong>witnesses of a real estate appraisal<\/strong> are the properties that are used for comparison in the valuation process. In other words, these <strong>comparable properties<\/strong> are <strong>properties similar to the one being valued<\/strong>, The professionals use them to support their opinion on the value in the valuation of the property.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The valuation technician selects at least six <strong>witness properties<\/strong> when valuing a property for mortgage purposes, these may include a number of properties for sale to illustrate current market performance, factors which can have a major impact on the value of a property.<\/p>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What is the purpose of real estate witnesses?<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">When valuing a property, valuers take into account local market values thanks to witness properties.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The <strong>real estate appraisal witnesses<\/strong> are fundamental in determining the value of a property and are included in valuation reports.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Importance in the method of comparison.<\/strong> It is the main technique for the valuation of residential property. <strong>The comparison (or market) method <\/strong>is based on the comparison of the property under valuation with another property of similar characteristics (surface area, location...), recently sold or for sale on the market (asking prices).<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">This method plays a key role in the valuation of houses, land and premises.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>How they influence the final assessment.<\/strong> As part of the valuation process, a comparative analysis of the witness properties is carried out, paying particular attention to factors that may lead to differences, such as location, surface area, condition or layout.<\/p>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">How are comparable properties chosen?<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Since most houses are not identical, valuers adjust the selling prices of the houses to be sold. <strong>comparable properties<\/strong> taking into account the differences. This homogenisation process governing witness prices helps to form an opinion on the value of the house, considering its unique characteristics in the context of recent sales.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Main criteria for comparison<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Suitable comparables for use in the comparison method would be those properties that can be considered to be <strong>real purchasing alternatives<\/strong> for someone considering buying the property under valuation and should therefore be in locations that are as close or as similar as possible.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">In order for both the development of the method and the conclusions obtained to be reasonable and justified, it is necessary to evaluate factors such as the following in the real estate appraisal witnesses:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Location<\/li>\r\n\r\n\r\n\r\n<li>Surface<\/li>\r\n\r\n\r\n\r\n<li>Seniority<\/li>\r\n\r\n\r\n\r\n<li>State of conservation<\/li>\r\n\r\n\r\n\r\n<li>Use of the property<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Sources of witness information<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The following criteria for the selection of comparables are adopted in the valuation reports:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>The existence of a representative market<\/strong> of comparable properties.<\/li>\r\n\r\n\r\n\r\n<li><strong>Have own databases<\/strong> with sufficient information on transactions or offers to allow, in the area concerned, the identification of appropriate parameters to perform the homogenisation of comparables.<\/li>\r\n\r\n\r\n\r\n<li><strong>Having information <\/strong>sufficient information on operations, offers and other factors <strong>reflecting the current market situation<\/strong>.<\/li>\r\n\r\n\r\n\r\n<li><strong>Know historical data to estimate prices<\/strong> The local market purchase and sale prices for previous years can be analysed. In this way it is possible to analyse the aspects that have influenced the variations.<\/li>\r\n\r\n\r\n\r\n<li>Having reliable information from own databases, official publications (such as public registers) or private publications (e.g. real estate portals, price indexes, etc.) on how the variables that influence the prices of properties similar to the one being valued have evolved historically, how they have behaved in the relevant economic cycle and what the current situation of the real estate market is.<\/li>\r\n\r\n\r\n\r\n<li><strong>Having adequate procedures in place<\/strong> which, through the detection of bids or transactions with abnormal data in the local market, make it possible to identify and eliminate speculative elements.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Should witnesses always be for sale?<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">No, the<strong> real estate appraisal witnesses<\/strong> real estate does not always have to be for sale. The valuation technician relies mainly on <strong>SALES WITNESSES<\/strong> (those comparable properties of recent sale) because they reflect real prices, and in real estate <strong>offer witnesses<\/strong>, which are for sale and are used as a complementary reference.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Who determines which witnesses are valid?<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Valuation professionals determine which comparable properties are appropriate in the valuation process. In practice, the application of the <strong>comparison method <\/strong>requires a thorough knowledge of the market as well as the unique characteristics of the properties.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Valuation companies, such as Gesvalt, have extensive and proven databases that guarantee that valuation techniques are applied correctly.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">How many witnesses are normally used?<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>How many witnesses are needed for a mortgage appraisal?<\/strong> The rules governing valuers provide for the requirement to provide a<strong> minimum of 6 comparable properties.<\/strong><\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">In places with little real estate activity, these 6 comparable witnesses may be 100% of suitable properties. However, in larger markets, 6 comparables may be too few if not well selected, because they may not accurately represent the market.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">In general, the \u201cuniverse\u201d of eligible comparable properties is usually less than 30. In order to make a reliable estimate and avoid sampling errors, it is recommended to use information from at least 90% of these actual competitors.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Ultimately, the regulation sets a legal minimum (6 comparables), but in order for the valuation to be statistically sound, it is ideal to include almost all actual competitors available, especially in small markets.<\/p>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What mistakes should be avoided when selecting witnesses?<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Eligible witnesses are those properties that can be considered real purchase alternatives for someone considering acquiring the real estate asset being valued. Therefore, special care should be taken not to select the wrong witness properties.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Avoidance is necessary:<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Inconsistent comparables.<\/strong> Those very different from the one being valued, in terms of typology, surface area, location or qualities, will lead the valuer to make very significant adjustments.<\/li>\r\n\r\n\r\n\r\n<li><strong>Outdated data.<\/strong> If old data is applied, it will not reflect the current situation, especially in dynamic real estate markets. Therefore, recent sales are prioritised.<\/li>\r\n\r\n\r\n\r\n<li><strong>Off-market real estate.<\/strong> Those properties whose unique characteristics make them unique and whose price does not reflect the market value. Also properties offered that do not attract buyers because they are outside the average range.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What method of valuation do witnesses use?<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The <strong>comparison method<\/strong> is the one that uses appraisal witnesses.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">This method is at the basis of any other method used, since, ultimately, in order to value it is always necessary to resort to observation of the market itself, either to directly identify sale or rental prices of properties similar to the one being valued, or to obtain other types of data that can indirectly help us to deduce the value of properties for which there is not so much evidence of rental or sale.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">What is the comparison method?<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The comparison method consists of comparing the property being valued with other properties of similar characteristics and location (real estate valuation witnesses) that have recently been sold or offered.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">It is the main and most straightforward of the existing valuation methods, as indicated by the <a href=\"https:\/\/www.asociacionaev.org\/blog\/2022\/05\/04\/como-se-trabaja-con-los-testigos-o-comparables-en-las-valoraciones\/\" target=\"_blank\" rel=\"noopener\">Spanish Association of Value Analysis (AEV)<\/a>, of which Gesvalt is a member.<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Advantages and limitations of this method<\/h3>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">The comparison method is comprehensible to all and transparent. It can be adapted to different contexts (flats, houses, premises, land...), it is supported by regulations. <a href=\"https:\/\/gesvalt.es\/en\/blog\/order-ecm-599-2025-normative-real-estate-valuation-regulations\/\">(Order ECM\/599\/2025)<\/a>, and reflects the real market, among its main advantages.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">In rural areas or markets with little activity, it may be difficult to find recent and suitable witnesses. Other possible limitations of this method include a biased selection of comparables.<\/p>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Other frequently asked questions about comparable properties<\/h2>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Should witnesses always be for sale?<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>No, the properties witnessed in a real estate appraisal are not always for sale; they may be recent sales or bargain properties, used to reflect actual market value.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Who determines which witnesses are valid?<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Valuation professionals select suitable comparable properties, evaluating location, characteristics and market data to ensure an accurate valuation.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Can an appraisal be challenged on the basis of the witnesses used?<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Yes, a valuation can be challenged if there are indications that the comparable witnesses used are not suitable.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>The grounds for challenging the valuation of comparable properties can range from lack of homogeneity in their choice, inclusion of outdated data with transactions older than 6 months, out-of-market comparables or lack of documentation to support the transactions used.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">Valuation results often influence the decisions of parties in real estate transactions. Sellers and buyers use them to set prices and negotiate. This is why the choice of the method, of the <strong>witnesses in real estate valuation<\/strong> and the rigorous use of comparable properties as a basis for obtaining a reliable value.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\">A professional valuer has the expertise to assess these factors in order to calculate the price of a property.<\/p>\r\n\r\n\r\n\r\n<p class=\"wp-block-paragraph\"><strong>Importance of a good valuation. <\/strong>At Gesvalt we have more than 30 years of experience in <a href=\"https:\/\/gesvalt.es\/en\/presupuesto-tasacion-vivienda\/\">real estate valuation.<\/a> We specialise in offering <a href=\"https:\/\/gesvalt.es\/en\/\">valuations for individuals and companies<\/a> with maximum transparency, ensuring that each analysis complies with national and international standards. Our sector and market knowledge allows us to provide key information for decision-making.<\/p>","protected":false},"excerpt":{"rendered":"<p>Appraisers use comparable properties or real estate appraisal witnesses to help develop an opinion of a home's value.<\/p>","protected":false},"author":1,"featured_media":193328,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6,111,5,42,72],"tags":[23,155],"class_list":["post-185321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mercado-inmobiliario","category-mercado-residencial","category-particulares","category-sin-categoria","category-tasacion","tag-tasacion","tag-testigos"],"acf":[],"_links":{"self":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/185321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/comments?post=185321"}],"version-history":[{"count":3,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/185321\/revisions"}],"predecessor-version":[{"id":192085,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/posts\/185321\/revisions\/192085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/media\/193328"}],"wp:attachment":[{"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/media?parent=185321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/categories?post=185321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gesvalt.es\/en\/wp-json\/wp\/v2\/tags?post=185321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}