Appraisal myths debunked
It is required by the government that an appraiser is required to be state-licensed to offer appraisal reports for federally-supported home purchases in Texas. The law gives you the right to get a copy of your finished report from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser is required to be the same as the market value.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby homes are excellent examples of why this occurs.
Myth: The buyer or the seller often will have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: There is no vested interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is written.
Myth: Any time market value is found, it should be similar to the replacement cost of the property.
Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under duress to buy or sell. If the property were rebuilt, the dollar amount required to do so would set the replacement cost.
Myth: Certain formulae, such as the price per square foot of the property, are what appraisers use to come to the cost of a property.
Fact: There are many differing methods that an appraiser will use to make a detailed investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable homes.
Myth: As homes appreciate by a certain percentage - in a robust economic state - the properties around the appreciating properties are figured to appreciate by the same amount.
Fact: Any worth at which an appraiser concludes in regards to a certain property is always individualized, based on certain factors derived from the data of comparable homes and other considerations within the home itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Brazoria County or Pearland, TX?Contact us
Myth: The home's outside is determinate of the actual price of the home; it is unnecessary to do an interior appraisal.
Fact: There are a number of different factors that determine the value of a home; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by inspecting the property from the exterior.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their home, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lender - unless the lender "releases its interest" in the appraisal. However, consumers must be provided with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lender is fine with the contents therein.
Fact: Only if consumers examine 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. An appraisal can double as a record for the future, since it contains an exorbitant amount of information - including, but 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: There is no reason to order an appraisal unless you are trying to get an estimate of the worth of a property during a sales transaction involving a lending company.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no 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 finds an opinion of value in the appraisal process and resulting document. A home inspector assesses the condition of the house and its major components and reports these findings.