Common myths about appraising
Legally, an appraiser is required to be state certified to create substantiated real estate appraisals for federally-related purchase. You also have the right to request a copy of the finished appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Market value needs to be the same as the assessed value of the property.
Fact: This usually isn't true; 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 unaware of and a dearth of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the appraised value of the house will vary.
Fact: The appraised value of the home does not affect the salary of the appraiser; because of this, the appraiser has no vested interest in the opinion of value of the property. Obviously, he will provide job with impartiality and independence regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equal the replacement cost of the property.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any external party to purchase or sell. If the home were rebuilt, the dollar amount necessary to do so would form the replacement cost.
Myth: Specific methods, such as the price per square foot, are the ways appraisers use to ascertain the value of a house.
Fact: Appraisers complete a detailed analysis of all factors in consideration to the cost of a home, including its location, condition, size, proximity to facilities and recent costs of comparable houses.
Myth: When the economy is on the rise and the sales prices of properties are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.
Fact: Worth appreciation of a specific property has to be concluded on a case-by-case basis, factoring in data on comparable homes and other relevant elements. It makes no difference if the economy is robust or poor.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact our professional staff
Myth: You can often see what a home is worth simply by looking at the outside.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by looking at the property from the outside.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their property, they own their appraisal.
Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the report. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with it by their lending company.
Myth: There's no need for consumers to even care about what the appraisal contains so long as their lender is satisfied.
Fact: A home buyer should definitely read through their appraisal report; there will probably be some questions or some concerns with the accuracy of the analysis that should be addressed. 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, comprised of helpful 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 order an appraisal unless you are trying to get an estimate of the value of a house during a sales transaction involving a lending agency.
Fact: Appraisers can have many different qualifications and designations which allow them to perform 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: An appraisal is the same as a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal report. The point of an appraisal report is to form an opinion of fair market value during the appraisal process and the production of the report. House inspectors will compose a report that will determine the condition of the property and its major components and possible damage.