Market and investment

Appraised value (odhadní cena)

In Czech: Odhadní cena nemovitosti

Appraised value (odhadní cena) is the value a valuer or court expert sets for a property for a specific purpose, most often for a bank granting a mortgage. It can differ from both the purchase price and market value.

Also called: valuation, property appraisal, odhadní cena, odhad nemovitosti, znalecký posudek

What it means

Appraised value, in Czech odhadní cena nemovitosti, is the amount a valuer (odhadce) or court-appointed expert (soudní znalec) puts on a property in a written valuation or expert report (znalecký posudek). Unlike an asking price, it is based on an inspection of the property, its documents and a comparison with other properties, not on what the seller would like to get.

The figure always depends on why the valuation was made. A bank wants to know what the property is worth as security for a loan, while a court or heirs need a fair basis for dividing assets. So the appraised value need not match either the purchase price or the market value.

How it works in the Czech Republic

For a mortgage, the valuation is one of the documents the bank relies on. The Czech National Bank (ČNB) defines LTV as the ratio of the loan amount to the value of the collateral (hodnota zajištění). The lower the collateral value the bank sets, the smaller the loan it can grant at a given LTV. As of October 2026 the binding LTV cap is 80 %, or 90 % for applicants under 36 buying their own home.

A valuation usually involves a visit to the property, a check of the title deed (list vlastnictví), the documentation and the energy certificate (PENB), and a comparison with similar properties. Who orders it, whether you pay for it and how much it costs differ from bank to bank, so ask before you sign a reservation agreement.

Outside mortgages, valuations are needed for example in inheritance, divorce, ending co-ownership or contributing a property to a company. Authorities and courts generally require an expert report from a court-appointed expert.

Practical example

For example, a buyer agrees a price of CZK 5,000,000 and plans a mortgage of 80 % of the price, CZK 4,000,000. The bank, however, sets the collateral value at CZK 4,700,000. At an LTV of 80 % of that value it can lend at most CZK 3,760,000, so the buyer has to find another CZK 240,000 from own funds or negotiate a lower price. The amounts are illustrative only.

What to watch out for

  • Ask the bank in advance who orders the valuation, what it costs and how long it takes.
  • Keep a cash reserve in case the valuation comes in below the purchase price.
  • Prepare documents for the valuer: floor plan, title deed, energy certificate and details of any renovation.
  • Do not treat the bank's valuation as the only test of whether the price is good; it serves a different purpose.

Frequently asked questions

Why does the bank need a valuation if I already know the price?

The bank needs to know the property's value as security for the loan. The ČNB defines LTV as the loan amount divided by the collateral value, and the valuation is the basis the bank uses to set that value.

What if the valuation is lower than the purchase price?

The bank may lend less than you planned. You then need to cover the gap from your own money, negotiate a lower price or try another bank.

Is appraised value the same as market value?

Not necessarily. A valuation is made for a specific purpose and under the commissioning party's method, while market value estimates what the property would fetch on the open market.

  • Property valuation (odhad nemovitosti)A property valuation (odhad nemovitosti) is an assessment of a flat, house or plot that a bank relies on when deciding on a mortgage. It is used to set the collateral value and thus how much the bank will lend.
  • LTV (loan-to-value)LTV (loan-to-value) is the ratio of the loan amount to the value of the collateral, i.e. the pledged property. It decides how much of a purchase a mortgage can cover and how much you must pay yourself.
  • Mortgage (hypotéka)A mortgage (hypotéka) is a long-term housing loan secured by a lien on a property. The borrower repays it in regular monthly instalments, usually over many years.
  • Market value of a property (tržní cena)Market value (tržní cena) is the amount a property would most likely sell for at a given time and place, between a buyer and a seller acting freely and without pressure.
  • Purchase price (kupní cena)The purchase price (kupní cena) is the amount the buyer pays the seller for a property, as agreed in the purchase agreement. The price in a listing is only an offer; what counts is the figure in the contract and what it includes.

Sources

Laws and official pages this text is based on (in Czech).

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

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