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Common myths about appraising

By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-supported transactions. Also by law, you are entitled to request a copy of the completed appraisal from your lending agency. Contact us if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser must be exactly the same as the market value.

Fact: It could be that Texas, like most states, validates the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the area have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the cost of the property will vary.

Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is created.

Myth: The replacement cost of the property is always is on par with the market value.

Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific home. The replacement cost is the dollar amount necessary to rebuild a property in-kind.

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

Fact: An appraisal is an assertion of data concluded from the property's size, location, proximity to certain facilities, the condition of the house and the worth of recent comparable sales. You can rely on Elite Appraisal Services's staff to be honest in assessing this data.

Myth: When the economy is on the rise and the sales prices of houses are reported to be rising by a certain percentage, the other houses in the area can be expected to rise based on that same percentage.

Fact: Price appreciation of a certain house is always concluded on an individualized basis, factoring in data on comparable homes and other relevant considerations. It makes no difference if the economy is powerful or poor.

Have other questions about appraisers, appraising or real estate in Brazoria County or Pearland, TX?

Contact Elite Appraisal Services

Myth: The house's outside is determinate of the actual price of the house; there is no need to do an interior appraisal.

Fact: Home value is determined by a multitude of variables, including area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just looking at the house from the exterior.

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

Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. By the Equal Credit Opportunity Act, any home buyer asking for a copy of the report must be provided with it by their lending company.

Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lending company is satisfied.

Fact: Only if consumers look at a copy of their appraisal report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an excellent record for future reference, filled with useful and often-revealing information - including 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the cost of a home during a sales transaction involving a lending agency.

Fact: Depending upon their qualifications and designations, appraisers can and often do provide a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: A home inspection serves the same purpose as an appraisal.

Fact: Appraisal reports are definitely not the same as a home inspection. The point of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal report. House inspectors will produce a report that will determine the condition of the property and its major components and possible damage.