Appraisal myths & facts
Legally, an appraiser needs to be state certified to write substantiated real estate appraisals for federally-supported sales. Also by law, you are entitled to request a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value has to be the same as the assessed value of the property.
Fact: It could be that Texas, like most states, supports the common myth that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the area have not been reassessed for an extended period.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is found, it should be the same as the replacement cost of the property.
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 house. If the house were reconstructed, the dollar amount necessary to do so would form the replacement cost.
Myth: There are specific methods that appraisers use to show the cost of a house, such as the price per square foot.
Fact: An appraisal report is an amalgamation of data based on the house's size, location, proximity to some facilities, the condition of the house and the cost of recent comparable sales. You can depend on Appraisal Professionals's appraisers to be forthright in assessing this information.
Myth: In a robust economy - when the sales prices of houses in a given area are found to be increasing by a certain percentage - the values of individual homes in the vicinity can be expected to appreciate by that same percentage.
Fact: Any cost at which an appraiser concludes concerning a particular property is always personalized, based on certain factors found from the information of comparable homes and other considerations within the home itself. It makes no difference whether 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: Just looking at what the home looks like on its exterior gives an idea of its worth.
Fact: To find an accurate value beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. There's no real way to get all of this information from simply viewing the home from the exterior.
Myth: Since you're the one paying for the appraisal report when applying for your loan to purchase or refinance your home, you own the provided appraisal report.
Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the document. However, consumers must be supplied with a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal document so long as it satisfies the necessities of their lending agency.
Fact: Only if consumers check out a copy of their appraisal report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored in an report that could be useful to the consumer in the future, such as 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: Appraisers are hired only to assess building values in property sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection.
Fact: Appraisal reports are nothing like a home inspection. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. A home inspector analyzes the condition of the building and its main components and reports these findings.