Appraisal myths debunked

Legally, an appraiser must be state certified to create legitimate appraisal reports for federally-related sales. You also have the right to acquire a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.

Myth: Assessed value will always be similar to to market value.

Fact: It is possible that , like most states, supports the common myth that the assessed value equates to the market value; however, this is not often the case. Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby houses are excellent examples of why this occurs.

Myth: Depending on if the appraisal is ordered for the buyer or the seller, the value of the property will vary.

Fact: The appraised value of the property does not affect the pay of the appraiser; as such, the appraiser has no pressured interest in the worth of the house. What this means is he will provide services with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: The replacement value of the property should be is on par with the market value.

Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a specific home, with neither being under pressure to buy or sell. Replacement value is the dollar amount necessary to reconstruct a home in-kind.

Myth: There are certain methods that appraisers use to determine the opinion of value of a property, like the price per square foot.

Fact: Appraisers make a full analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent costs of comparable properties.

Myth: In a powerful economy - when the worth of properties in a given neighborhood are found to be appreciating by a particular percentage - the values of individual homes in the proximity can be expected to appreciate by that same percentage.

Fact: Any cost at which an appraiser arrives in regards to a certain house is always individualized, based on certain factors concluded from the data of comparable properties and other considerations within the home itself. It makes no difference whether the economy is strong or on the decline.

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Myth: The home's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.

Fact: There are a number of different variables that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the information needed.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their home, they legally own their appraisal report.

Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report. Consumers must be supplied with a version of the document through request as per the Equal Credit Opportunity Act.

Myth: Home buyers need not be concerned with what is in their report so long as it exceeds the necessities of their lending group.

Fact: A home buyer should definitely inspect their appraisal report; there may be some questions or some worries with the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal that can be useful to the consumer in the future, such as the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the proximity.

Myth: Appraisers are hired only to assess building values in house sales involving mortgage-lending transactions.

Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: You don't have to get an appraisal if you order a home inspection.

Fact: An appraisal report does not serve the same purpose as an inspection. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. House inspectors will produce a report that will determine the condition of the home and its major components and possible damage.