Appraisal myths debunked
Legally, an appraiser must be state certified to write substantiated appraisal reports for federally-supported sales. You also have the right to receive a copy of the finished report from your lender. Contact Appraisal Professionals if you have any questions about the appraisal procedure.
Myth: Assessed value generally will equate to market value.
Fact: While most states support the suggestion that assessed value equates estimated market value, this usually is not the case. Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when properties in the vicinity have not been reassessed for an extended period.
Myth: The buyer or the seller sometimes may have impact in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the outcome of the appraisal and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the property should be is on par with the market value.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home. Replacement value is the dollar amount necessary to rebuild a property in-kind.
Myth: Certain methods, like the price per square foot, are the ways appraisers use to arrive at the cost of a house.
Fact: There are many numerous calculations that an appraiser will use to make a comprehensive investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable homes.
Myth: When the economy is doing well and the value of houses are found to be appreciating by a certain percentage, the other homes in the area can be expected to rise based on that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a specific house is always individualized, based on certain factors found from the information of comparable homes and other considerations within the house itself. It makes no difference if the economy is strong or on the decline.
Have other questions about appraisers, appraising or real estate in Hays County or Kyle, TX?Contact Appraisal Professionals
Myth: The house's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.
Fact: To find an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the information necessary.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the report. Home buyers must be provided with a copy of the report upon written request as per the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even care about what the report contains so long as their lending company is fine with the contents therein.
Fact: Only if consumers look at a copy of their appraisal 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. An report can double as a record for the future, containing a great deal of 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 area.
Myth: Appraisals are ordered only to assess house values in home sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal report. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. A home inspector determines the condition of the house and its major components and reports these findings.