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Common myths about appraising

It is enforced by legal agencies that a real estate appraiser must be state-licensed to create appraisal reports for federally-related real estate transactions in Oklahoma. You also have the right to acquire a copy of the finished report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: The value that is assessed by the appraiser is required to be the same as the market value.

Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the Lawton have not been reassessed for years or more, it may vary wildly.

Myth: The appraised value of a house will differ depending upon whether the appraisal is ordered for the buyer or the seller.

Fact: The opinion of value of the home does not affect the salary of the appraiser; due to this, the appraiser has no vested interest in the cost of the home. Obviously, he will complete his services with impartiality and independence regardless for whom the appraisal is produced.

Myth: Market value will equate to replacement cost.

Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a home without being under duress from any outside party to purchase or sell. The replacement cost is the dollar amount required to reconstruct a house in-kind.

Myth: There are certain methods that appraisers use to determine the opinion of value of a home, like the price per square foot.

Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can count on Barnes Appraisal Company's staff to be professional in assessing this data.

Myth: As homes appreciate by a certain percentage - in a strong economy - the houses around the appreciating properties are expected to increase by the same amount.

Fact: Any worth at which an appraiser arrives in regards to a specific house is always personalized, based on certain factors pulled from the information of comparable houses and other considerations within the home itself. This is true in fair economic times as well as bad.

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

Contact Barnes Appraisal Company

Myth: Just looking at what the home looks like on the outside gives an excellent idea of its cost.

Fact: Property value is determined by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by looking at the property from the exterior.

Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal.

Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "relinquishes 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 worry about what the report contains so long as their lending institution is fine with the contents therein.

Fact: It is a very good idea for home buyers to read a copy of their appraisal so that they can verify the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, filled with useful 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: Appraisals are ordered only to estimate building values in home sales involving mortgage-lending transactions.

Fact: Based upon their qualifications and designations, appraisers can and will provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal is no different than a home inspection.

Fact: An appraisal does not fulfill the same purpose as an inspection report. The job of the appraiser is to form an opinion of value in the appraisal process and through creating the report. A home inspector determines the condition of the property and its main components and reports these findings.