Appraisal myths & facts
It is mandated by law that an appraiser is required to be state-licensed to offer appraisals for federally-supported property transactions in Alabama. You have the ability to demand a copy of the completed appraisal from your lender. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value should be equal to market value.
Fact: While most states support the concept that assessed value is the same as estimated market value, this generally is not the case. At times when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Tuscaloosa have not been reassessed for years or more, it may vary wildly.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the home will vary.
Fact: There is no real 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 conducted.
Myth: The replacement cost of the property is always is on par with the market value.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. Replacement value is the dollar amount necessary to reconstruct a house in-kind.
Myth: Certain methods, like the price per square foot, are what appraisers use to arrive at the value of a house.
Fact: An appraisal is an amalgamation of data based on the home's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on Shamrock Appraisals, Inc.'s staff to be honest in assessing this information.
Myth: When the economy is on the rise and the sales prices of houses are reported to be increasing by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Any worth at which an appraiser arrives in regards to a specific property is always individualized, based on certain factors concluded from the data of comparable properties and other specifications within the home itself. This is true in fair economic times as well as bad.
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 house looks like on the outside gives an idea of its worth.
Fact: House worth is concluded by a multitude of variables, including area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the information needed.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your home, you own the produced appraisal.
Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal report. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with one by their lending agency.
Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lending company is satisfied.
Fact: It is a very good idea for home buyers to go through a copy of their report so that they can double-check the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information stored in an appraisal that should be useful to the home buyer 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 area.
Myth: The only reason someone would order an appraisal is if a house needs its price assessed in a lender-based sales transaction.
Fact: Appraisers can have many varied 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: You shouldn't need to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection report. The point of an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the completion of the report. A home inspector analyzes the condition of the home and its main components and reports their findings.