Knowing and detecting the actual condition of a property before deciding to purchase it is the main goal of the proptech Revicasa. Supported by the most advanced technology and with certified architects who have extensive experience in construction and rehabilitation projects, Revicasa detects potential deficiencies in structure, electrical installation, plumbing, humidity, and other defects that may be hard to spot at first glance. We discuss this untapped market niche in Spain with Daniel Martín, co-founder of Revicasa, and what it offers future buyers.
You define yourselves as experts in home inspections. For those thinking about buying a second-hand home, how can they request an inspection with Revicasa?
Our goal is to help people who are considering purchasing a home to do so with the utmost peace of mind, security, and confidence that the property is in good condition.
The inspection request with Revicasa is made through our website. The client requests a review of the property they are interested in, whether it’s an apartment, a block of flats, or a chalet. On the day of the inspection, our technicians review every corner of the home with the most advanced technological tools, test all the installations, and address any concerns the potential buyer may have.
Real estate inspection is an emerging sector in Spain that provides peace of mind, security, and confidence when investing in a property. What level of acceptance does this model have in Spain, and what sets you apart from other companies?
We are a 100% Spanish-owned company, founded in early 2023, with a business model still in its early stages in Spain. In countries like the United States, this market reaches figures close to 4.5 billion euros. In Europe, in countries like the UK and the Nordic countries, the model is already well-accepted. In Spain, we have introduced a pioneering service that helps buyers purchase properties with confidence.
In second-hand properties, we detect a serious problem in one out of every four homes that may affect the structure or habitability
The service offered by Revicasa is gaining considerable acceptance in Spain because it provides security to the buyer and is a novel service. We started in Madrid, and the warm reception we’ve had has led to our rapid expansion, allowing us to be present in almost all of Spain’s autonomous communities, such as Andalusia, Catalonia, Galicia, Madrid, the Basque Country, and the Valencian Community, among others.
Additionally, we have developed our own app with an AI component that allows our architects to generate highly accurate inspection reports with photos, estimates, and specific comments of great value.
Within a maximum of 48 working hours, our architects produce a complete report with as much information as possible.
How can the condition of a property be detected before purchase, and what is inspected during an inspection?
All our technicians are certified architects or technical architects with extensive experience in construction and rehabilitation projects. They also receive specific training at Revicasa, and we provide them with the latest technology available on the market for detecting hidden defects and verifying the proper condition of the installations.
During a home inspection, our technicians check the exterior for any structural problems, construction defects, and compliance with the current Building Code. As for the interior, it is inspected in great detail, and all installations, such as electrical, plumbing, or climate control systems, are tested. The condition of the finishes and insulation in doors and windows is also checked, along with detecting any hidden defects related to moisture or structural or construction issues that may be visible inside.
What are the most common issues you detect in the actual condition of a property?
In second-hand properties, we detect serious issues in one out of every four homes, which can affect the structure or even make the home uninhabitable. We mainly find outdated installations, moisture problems, and structural cracks. Additionally, we notice that cost estimates for repairs are often far from reality by potential buyers, and our report allows them to assess the actual cost of investment.
In new builds, we find significant discrepancies between the project and the final execution, such as underfloor heating that is shown on the plans but not installed in all areas where it should be, something we can detect with our thermal cameras.
Technology is key to Revicasa. What types of innovations have you implemented to carry out the entire home inspection process?
To conduct a detailed study, the certified architects working with Revicasa use technological tools such as thermal cameras, hygrometers, sound level meters, and gas leak detectors, among others. For example, with thermal cameras, we can check whether heating systems like underfloor heating, air conditioning, or radiators are working properly.
Failing to detect a serious problem can incur additional costs of between 5-20% of the purchase price
Additionally, we have spent the last 6 months developing a custom app with its own AI component, which facilitates the economic quantification of the deficiencies our technicians find on-site. It also provides additional insight into the origins and potential solutions to the detected problems.
According to INE data, 82.1% of homes sold in Spain are second-hand properties, yet many have unidentified structural problems that can lead to extra expenses for the buyer in the long run. What approximate percentage of extra costs are we talking about?
Failing to detect a serious problem can result in additional costs of between 5-20% of the purchase price. This depends on the size of the property and the type of problem. For structural issues, extra costs range from 10,000 to 20,000 euros. For example, if there is a moisture issue, costs typically range from 3,000 to 15,000 euros, depending on the source. The figure can increase depending on the specific problem.
From Revicasa’s experience, what is your assessment of the condition of second-hand homes in general? What are the most common hidden defects in second-hand homes?
Overall, we have a very old and deteriorated housing stock. The main hidden problems in homes are moisture, structural damage, and issues with installations (electricity, plumbing, climate systems…). These issues are not visible at first glance, which is why certain tools are necessary to ensure they are functioning correctly.
On the other hand, what are second-hand home buyers primarily looking for?
Beyond knowing the property’s deficiencies, the most important thing for buyers is to quantify the cost of these issues. The problems found and the estimated repair costs we provide will determine whether it is truly worth making the investment. Additionally, it gives the buyer negotiation power based on our report, allowing them to potentially reduce the final price of the property.
In this regard, buyers are justified in asking for a price reduction if there is a hidden issue or deficiency that was not initially detected, and the seller may not have been aware of. We have also found that it is easier for sellers to accept a lower offer when the potential buyer provides evidence of a deficiency uncovered during the inspection.
Furthermore, it offers the buyer peace of mind, knowing that the investment they are making is indeed going towards a property that justifies the price they are paying for it.
You operate in regions with a high percentage of second-hand homes like Madrid, Catalonia, Valencia, Andalusia, the Basque Country, Galicia, and Extremadura. Looking to the future, what are your plans for expansion and growth?
Our goal is to provide service throughout the Iberian Peninsula, the Canary Islands, and the Balearic Islands by the end of 2025. By the end of 2024, we hope to have opened another office in the Valencian Community, and next year we aim to triple our revenue.
