Appraisal myths & facts
It is required by the government that an appraiser must be state-licensed to perform appraisals for federally-related home transactions in Texas. The law gives you the right to acquire a copy of your completed report from your lender after it has been provided. Contact us if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an prolonged time.
Myth: The buyer or the seller can have leverage in the value of the property depending upon for whom the appraiser is working.
Fact: There is no vested interest on the part of the appraiser in the outcome of the report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is created.
Myth: The replacement value of the property is always is on par with the market value.
Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a house without being under influence from any outside group to purchase or sell. If the property were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to figure out the cost of a property.
Fact: An appraisal report is an amalgamation of data concluded from the property's size, location, proximity to specific facilities, the condition of the house and the worth of recent comparable sales. You can depend on Appraisal Professionals's staff to be honest in assessing this information.
Myth: As properties increase their worth by a certain percentage - in a robust economy - the homes within the same neighborhood are expected to increase by the same amount.
Fact: Cost increase of a specific home is always concluded on a case-by-case basis, factoring in data on comparable homes and other relevant considerations. It makes no difference if the economy is powerful or terrible.
Have other questions about appraisers, appraising or real estate in Hays County or Kyle, TX?Contact us
Myth: The home's exterior is determinate of the actual price of the house; there is no need to do an interior appraisal.
Fact: There are a number of different factors that determine the value of a home; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these things can be derived just by examining the house from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their house, they legally own their appraisal.
Fact: The document is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the document. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be given one by their lender.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the requirements of their lending agency.
Fact: Only if home buyers examine a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a near perfect record for future reference, containing useful and often-revealing 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a property during a sales transaction involving a lender.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection. An appraiser concludes on an opinion of value in the appraisal process and resulting report. The point of a home inspector is to assess the condition of the home and its main components, then provide a report on these conclusions.