Mortgages and financing

Property valuation (odhad nemovitosti)

In Czech: 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.

Also called: appraisal, valuation report, ocenění nemovitosti

What it means

A property valuation (odhad nemovitosti) assesses the value of the specific property that will secure a loan. The bank needs to know what the collateral is worth, because it is the basis for the LTV calculation. The Czech National Bank defines LTV as the ratio of the loan amount to the value of the collateral (hodnota zajištění).

A valuation for a bank is different from an online estimate or the price in a listing. The valuer looks at the condition, location, size and legal situation of the property and at comparable properties nearby.

How it works in the Czech Republic

The valuation is done as part of a mortgage or refinancing application. Who orders it and who pays for it varies by bank, so ask in advance. The valuer usually inspects the property and asks for documents such as the title deed (list vlastnictví), a floor plan or, for a new build, the project documentation.

The bank uses the result to set the collateral value. Credit ratios, including LTV, are calculated under ČNB Decree No. 399/2021 Coll. If the collateral value turns out lower than expected, the bank may lend less and you have to cover the difference from your own money or with another pledged property.

Under the ČNB limits in force as of October 2026, a loan can be at most 80% of the collateral value, or 90% for applicants under 36 buying their own home. That is why even a small gap in the valuation can decide whether you reach the mortgage you need.

Practical example

For example, you are buying a flat for CZK 4,000,000 and plan a loan of CZK 3,200,000, which is 80%. If the bank sets the collateral value at CZK 3,800,000, at the same LTV it will lend at most CZK 3,040,000 and you have to show the remaining CZK 160,000 from your own funds.

What to watch out for

  • Get the valuation done early, ideally before signing a reservation or purchase agreement with firm deadlines.
  • Give the valuer complete documents; missing papers can delay the result.
  • Ask the bank who orders and pays for the valuation and whether another bank would accept it.
  • If the value is lower than you expected, ask why; sometimes it is missing documents or a legal defect.
  • A bank valuation is no substitute for your own check of the property's technical condition.

Frequently asked questions

Is a valuation the same as the market price?

Not necessarily. The bank uses the valuation to set the collateral value, and it may differ from both the purchase price and asking prices in listings.

What can I do if the valuation comes out low?

You can add more of your own money, offer another property as collateral, try to renegotiate the price with the seller, or approach another bank. First check whether the valuer had all the documents.

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

The price is agreed between seller and buyer, while the bank needs its own view of what the collateral is worth. It then calculates the LTV from the collateral value and the maximum loan under the ČNB limits.

  • 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.
  • Appraised value (odhadní cena)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.
  • 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.
  • 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.
  • 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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