Appraisal myths & facts
Legally, a real estate appraiser is required to be state certified to produce substantiated real estate appraisals for federally-supported sales. You have the ability to receive a copy of the completed appraisal from your lender. Contact Shamrock Appraisals, Inc. if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser should be equivalent to the market value.
Fact: While most states uphold the idea that assessed value is the same as estimated market value, this commonly is not the case. Usually when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the opinion of value of the home will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement value of the house should be is on par with the market value.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell. The dollar amount necessary to reconstruct a home is what shows the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to figure out the worth of a home.
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 certain facilities and the worth of recently sold comparable houses.
Myth: When the economy is robust and the worth of properties are found to be rising by a certain percentage, the other homes in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Cost increase of a certain property must be determined on an individualized basis, factoring in data on comparable houses and other relevant elements. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?Contact Shamrock Appraisals, Inc.
Myth: The home's exterior is determinate of the actual value of the property; there is no need to do an interior appraisal.
Fact: Home worth is concluded by a number of variables, including area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data needed.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance their house, they legally own their appraisal report.
Fact: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the report. By the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be provided with it by their lender.
Myth: There's no reason for home buyers to even care about what the appraisal report contains so long as their lending institution is satisfied.
Fact: It is very important for home buyers to go through a copy of their report so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, containing a great deal of data - including, but certainly 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: The only reason someone would order an appraisal is if a property needs its cost assessed in a lender sales transaction.
Fact: Ordering an appraisal can fulfill a variety of needs 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: There's no reason to get an appraisal if you get a home inspection.
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 document. House inspectors will create a report that will determine the condition of the property and its major components and possible damage.