Appraisal myths & facts
Legally, a real estate appraiser has to be state certified to create substantiated appraisal reports for federally-related sales. Also by law, you have the right to request a copy of the finished report from your lender. Contact our professional staff if you have any questions about the appraisal process.
Myth: Market value will be similar to the assessed value of the property.
Fact: It might be that Oklahoma, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an extended period.
Myth: The opinion of value of a property will vary depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is ordered.
Myth: Any time market value is established, it should equal the replacement cost of the home.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. Replacement value is the dollar amount required to rebuild a property in-kind.
Myth: Specific methods, such as the price per square foot, are the ways appraisers use to come to the price of a property.
Fact: An appraisal report is a collection of data based on the property's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can depend on Barnes Appraisal Company's appraisers to be honest in assessing this data.
Myth: As homes appreciate by a certain percentage - in a robust economic state - the properties within the same neighborhood are expected to increase by the same amount.
Fact: All increase of worth is on a case-by-case basis, found by information on relevant considerations and the data of comparable properties. It makes no difference if the economy is excellent or terrible.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact us
Myth: You can commonly find what a house is worth simply by looking at the exterior.
Fact: There are a number of different factors that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just looking at the house from the exterior.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to purchase or refinance real estate, you own the ordered appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the report. However, home buyers must be provided with a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even concern themselves with what the report contains so long as their lending institution is fine with the contents therein.
Fact: A home buyer should definitely read through their appraisal; there could be some questions or some concerns about 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 makes an excellent record for future reference, containing helpful and often-revealing data - 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the worth of a home during a sales transaction involving a lender.
Fact: Depending upon their qualifications and designations, appraisers can and often do perform a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: An appraisal report does not fulfill the same purpose as an inspection. The reason behind an appraisal report is to form an opinion of fair market value during the appraisal process and the production of the appraisal report. The purpose of a home inspector is to assess the condition of the property and its main components, then provide a report on these inspection.