Appraisal myths debunked
It is enforced by the government that an appraiser is required to be state-licensed to create appraisal reports for federally-supported home transactions in Texas. You also have the right to demand a copy of the completed appraisal report from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value should be equivocal to the assessed value of the property.
Fact: While most states uphold the suggestion that assessed value approximates estimated market value, this commonly is not the case. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller may have some pull in the cost of the property depending upon for whom the appraiser is working.
Fact: The price of the home does not affect the pay of the appraiser; as such, the appraiser has no pressured interest in the cost of the house. This means that he will render task with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Any time market value is found, it should equate to the replacement cost of the property.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific home. Replacement value is the dollar amount required to rebuild a house in-kind.
Myth: There are certain ways that appraisers use to find the cost of a house, like the price per square foot.
Fact: There are many varied calculations that an appraiser will use to make a comprehensive investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable homes.
Myth: As homes increase their worth by a certain percentage - in a strong economy - the homes within the same neighborhood are figured to appreciate by the same amount.
Fact: Worth increase of a specific property must be concluded on an individualized basis, factoring in data on comparable homes and other relevant elements. This is true in good 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: The house's outside is determinate of the actual worth of the property; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different variables that show the value of a house; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just inspecting the property from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to purchase or refinance your house, you own the produced appraisal.
Fact: Legally, the document is owned by the lending agency unless the lender releases their interest in the document. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be provided with one by their lending company.
Myth: It doesn't concern consumers what's in the appraisal so long as it meets the necessities of their lending agency.
Fact: Only if consumers look through a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data contained in an appraisal report that can be useful to the home buyer 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 area.
Myth: Appraisers are hired only to assess home values in property sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of requirements 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 need to get an appraisal if you get a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. House inspectors will create a report that will show the condition of the home and its major components and possible damage.