Appraisal myths debunked
By law, an appraiser is required to be state-licensed to perform appraisals for federally-supported purchases. You are also entitled by law to request a copy of the completed appraisal report from your lending agency. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will equate to market value.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller can have impact in the value of the house depending upon for whom the appraiser is working.
Fact: The cost of the property does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the opinion of value of the property. This means that he will conduct job with impartiality and objectivity regardless for whom the appraisal is created.
Myth: The replacement cost of the home 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 particular house, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Certain methods, such as the price per square foot of the property, are the ways appraisers use to ascertain the price of a home.
Fact: Appraisers complete a full analysis of all factors in consideration to the value of a property, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: In a robust economy - when the costs of properties in a given area are reported to be appreciating by a particular percentage - the costs of individual houses in the vicinity can be expected to increase by that same percentage.
Fact: Value appreciation of a certain house is always determined on an individualized basis, factoring in information on comparable homes and other relevant elements. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Brazoria County or Pearland, TX?Contact Elite Appraisal Services
Myth: Just examining what the property looks like on its exterior gives an excellent idea of its cost.
Fact: To conclude an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the information needed.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance real estate, they legally own their appraisal.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the appraisal. However, consumers must be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the necessities of their lending company.
Fact: Only if consumers read 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 report makes a valuable record for future reference, containing helpful and often-revealing data - 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the cost of a property during a sales transaction involving a lender.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection report serves a completely different purpose than an appraisal. The appraiser concludes on an opinion of value in the appraisal process and resulting report. House inspectors will produce a report that will express the condition of the property and its major components and possible damage.