In Estonia’s 2025 property market, an interesting reversal has taken place:
while valuation reports used to be conservatively lower than actual sale prices, today they are often higher than what real buyers are willing to pay.
It has even become a marketing feature in listings on kv.ee:
“Appraisal €185,000 – Selling for €169,900.”
Here’s why this happens 👇
1. 📅 Valuation reports rely on past transactions
Appraisers use the Estonian Land Board transaction register, where data appears with a 2–4-month delay.
When the market cools, these models still reflect last quarter’s higher prices — meaning appraisals describe yesterday’s market, not today’s purchasing power.
2. 🏗️ Developer discounts aren’t visible in official records
New developments often include incentives like free parking, kitchens, or covered notary fees.
These discounts don’t show up in registry prices, so the appraiser sees only the gross amount and produces an over-optimistic valuation.
3. 💶 Pressure for “acceptable” values
Appraisers know that a valuation set too low can block a buyer’s mortgage.
Because of that, both banks and developers sometimes create subtle pressure to “adjust” the value slightly upward to make the loan work.
4. 📉 Few real transactions, limited comparable data
With fewer closed deals in 2025, appraisers often rely on earlier 2023–spring 2024 data.
That makes valuations 5–10% above what current buyers actually agree to pay.
5. 🖼️ Appraisers can’t see apartment photos
Estonian appraisers don’t have access to interior photos in the Land Board database.
They only see the address, size, and floor — not the apartment’s condition or renovation level.
Two similar flats may differ by €30,000 in real value, but the appraiser cannot tell the difference.
This lack of visual data means outdated or worn apartments may be overvalued.
6. 💬 Appraisal reports are used as marketing tools
Sellers now display higher appraisal values to suggest a “discount.”
In reality, this only shows how the valuation system lags behind market behavior:
buyers are more cautious, financing is tighter, and the real market adjusts faster than official models.
📊 Summary
| Period | Appraisal vs Market Price | Main Cause |
|---|---|---|
| 2021–2023 | Appraisal lower | Rising market, conservative approach |
| 2024–2025 | Appraisal higher | Cooling market, data lag, no photos |
🧭 Brokerly Comment
An appraisal report remains a key tool for financing, but it doesn’t automatically reflect the true selling price.
Real value appears only where data meets demand — and that’s precisely where professional market insight makes the difference.
