Appraisal myths debunked
Legally, a real estate appraiser needs to be state certified to perform substantiated real estate appraisals for federally-backed sales. The law entitles you to receive a copy of your finished appraisal from your lending agency after it has been provided. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value needs to be similar to the assessed value of the property.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. 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 prolonged period.
Myth: The buyer or the seller often will have leverage in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraised value of the home does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the house. Obviously, he will conduct job with impartiality and objectivity regardless for whom the appraisal is created.
Myth: The replacement value of the house will 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 home, with neither being under undue influence to buy or sell. If the house were rebuilt, the dollar amount necessary to do so would make up the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the opinion of value of a home, like the price per square foot.
Fact: There are many differing processes that an appraiser will use to make an in-depth analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the sales price of recently sold comparable properties.
Myth: As houses increase their worth by a specific percentage - in a strong economic state - the homes in proximity are figured to increase by the same amount.
Fact: All appreciation of value is on a one-on-one basis, determined by information on relevant elements and the data of comparable homes. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?Contact Shamrock Appraisals, Inc.
Myth: Just looking at what the property looks like on the outside gives an idea of its cost.
Fact: To find an accurate value beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. An exterior inspection obviously can't provide all of the information necessary.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to buy or refinance your house, you own the ordered appraisal report.
Fact: Unless a lender releases its interest in the document, it is legally owned by the lending company that ordered the appraisal. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal contains so long as their lending institution is fine with the contents therein.
Fact: It is a very good idea for consumers to check over a copy of their report so that they can verify the accuracy of the document, in case they 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 an exorbitant amount 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 vicinity.
Myth: The only reason someone would order an appraisal is if a property needs its value estimated in a lender-based sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a lot 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: An appraisal report is no different than a home inspection report.
Fact: Appraisal reports have almost nothing in common with a home inspection. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. The point of a home inspector is to determine the condition of the property and its major components, then produce a report on these conclusions.