Appraisal myths debunked
It is enforced by the government that a real estate appraiser must be state-licensed to write appraisals for federally-supported home purchases in Kentucky. You are also entitled by law to receive a copy of the finished appraisal from your lender. Contact us if you have any questions about the appraisal process.
Myth: Market value needs to be equivocal to the assessed value of the property.
Fact: It might be that Kentucky, like most states, supports the idea that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby homes are excellent examples of why this occurs.
Myth: The buyer or the seller will have leverage in the cost of the home depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should equal the replacement cost of the home.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. The dollar amount needed to reconstruct a home is what constitutes the replacement cost.
Myth: There are certain methods that real estate appraisers use to find the value of a property, like the price per square foot.
Fact: An appraisal report is an amalgamation of information based on the property's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can count on Graham Appraisal's staff to be ethical in assessing this information.
Myth: As homes increase their worth by a certain percentage - in a strong economic state - the houses in proximity are figured to appreciate by the same amount.
Fact: All increase of value is on a case-by-case basis, determined by data on relevant considerations and the data of comparable homes. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Barren County or Glasgow, KY?Contact us
Myth: You can generally tell what a property is worth simply by looking at the outside.
Fact: Property worth is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the information needed.
Myth: Because the consumer is the one who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Because of the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with it by their lender.
Myth: There's no reason for consumers to even care about what the appraisal report contains so long as their lending agency is fine with the contents therein.
Fact: Only if home buyers read a copy of their 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. Also, the appraisal report makes an invaluable record for future reference, comprised of helpful 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 area.
Myth: Appraisals are ordered only to estimate house values in home sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and do provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't need to get an appraisal if you order a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The task of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the house and its main components and reports these findings.