Appraisal myths & facts
It is mandated by the government that a real estate appraiser is required to be state-licensed to write appraisal reports for federally-related property purchases in California. Also by law, you have the ability to request a copy of the finished appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should be equal to market value.
Fact: It could be that California, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not always true. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller can have an influence in the value of the house depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the payment of the appraiser; because of this, the appraiser has no personal interest in the cost of the home. What this means is he will provide task with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is established, it should equate to the replacement cost of the home.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the home were rebuilt, the dollar amount needed to do so would form the replacement cost.
Myth: Certain methods, like the price per square foot, are the methods appraisers use to arrive at the cost of a property.
Fact: An appraisal is an amalgamation of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can count on Piscitelli Appraisal Service's staff to be honest in assessing this data.
Myth: In a robust economy - when the worth of properties in a given area are found to be appreciating by a particular percentage - the prices of individual properties in the proximity can be expected to appreciate by that same percentage.
Fact: Any value at which an appraiser arrives in regards to a particular property is always individualized, based on certain factors found from the information of comparable properties and other considerations within the home itself. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Ventura County or Oak Park, CA?Contact our professional staff
Myth: You can often find what a property is worth simply by looking at the exterior.
Fact: There are a multitude of different factors that show the value of a home; these factors include location, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data required.
Myth: Since you're the one providing the money for the appraisal when applying for the loan to buy or refinance your home, you own the ordered appraisal.
Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be given it by their lender.
Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the needs of their lender.
Fact: A home buyer should definitely look through their appraisal; there will probably be some questions or some concerns with the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, since it contains a great deal of data - including, but certainly not limited to 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 area.
Myth: Appraisals are ordered only to assess home values in house sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and do perform a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection report. An appraiser finds an opinion of value in the appraisal process and resulting report. House inspectors will produce a report that will explain the condition of the home and its major components and possible damage.