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Common myths about appraising

It is required by the government that an appraiser is required to be state-licensed to produce appraisal reports for federally-supported home purchases in Oklahoma. The law allows you to get a copy of your finished report from your lending agency after it has been produced. Contact Barnes Appraisal Company if you have any concerns about the appraisal process.

Myth: Assessed value generally will be equal to market value.

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. At times when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for quite a while, it may vary wildly.

Myth: The buyer or the seller may have an influence in the value of the house depending upon for whom the appraiser is working.

Fact: There is no real interest on the part of the appraiser in the result of the appraisal, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is written.

Myth: Any time market value is found, it should equate to the replacement cost of the home.

Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular house, with neither being under pressure to buy or sell. If the property were reconstructed, the dollar amount necessary to do so would set the replacement cost.

Myth: Certain methods, such as the price per square foot of the property, are the ways appraisers use to arrive at the value of a house.

Fact: There are many differing calculations that an appraiser will use to make an in-depth investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the worth of recently sold comparable homes.

Myth: In a robust economy - when the worth of homes in a given region are reported to be rising by a particular percentage - the costs of individual houses in the area can be expected to rise by that same percentage.

Fact: Any value at which an appraiser concludes in regards to a particular property is always individualized, based on certain factors concluded from the data of comparable properties and other considerations within the home itself. This is true in strong economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?

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Myth: You can commonly see what a property is worth simply by looking at the outside.

Fact: To find an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from simply examining the house from the outside.

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

Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be given one by their lending agency.

Myth: Consumers need not worry about what is in their appraisal document so long as it exceeds the requirements of their lending group.

Fact: Only if consumers check out a copy of their appraisal report can they verify 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 useful and often-revealing 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: The only reason someone would hire an appraiser is if a house needs its worth assessed in a lender sales transaction.

Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

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

Fact: A home inspection has a completely different purpose than an appraisal report. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report. The job of a home inspector is to find the condition of the house and its major components, then provide a report on these conclusions.