Appraisal myths debunked

It is enforced by the government that a real estate appraiser is required to be state-licensed to offer appraisals for federally-related property purchases in Texas. The law entitles you to receive a copy of your completed appraisal report from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal process.

Myth: Assessed value generally will be the same as to market value.

Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or other homes in the area have not been reassessed for a good length of time, it may vary wildly.

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

Fact: The appraiser has no personal interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: The replacement cost of the house is always is on par with the market value.

Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. Replacement value is the dollar amount needed to rebuild a home in-kind.

Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the value of a home.

Fact: An appraisal report is a collection of data concluded from the house's size, location, proximity to certain facilities, the condition of the house and the cost of recent comparable sales. You can depend on Appraisal Professionals's staff to be ethical in assessing this information.

Myth: As properties increase their worth by a specific percentage - in a robust economy - the properties within the same neighborhood are figured to increase by the same amount.

Fact: All increase of price is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable houses. It doesn't matter if the economy is doing well or declining.

Myth: You can commonly tell what a house is worth simply by looking at the exterior.

Fact: Home value is concluded by a number of variables, including area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply looking at the home from the exterior.

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

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

Myth: It doesn't matter to consumers what's in the report so long as it meets the necessities of their lender.

Fact: It is almost imperative for consumers to peruse a copy of their report so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, since it contains an exorbitant amount of 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 vicinity.