Appraisal myths debunked
Legally, a real estate appraiser must be state certified to produce substantiated real estate appraisals for federally-backed sales. Also by law, you have the right to receive a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value should always be equal to market value.
Fact: While most states uphold the concept that assessed value approximates estimated market value, this generally is not the case. There are times when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller can have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The price of the property does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the property. What this means is he will provide task with impartiality and independence regardless for whom the appraisal is produced.
Myth: Any time market value is found, it should equal the replacement cost of the home.
Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell. The replacement cost is the dollar amount necessary to reconstruct a property in-kind.
Myth: There are certain ways that appraisers use to determine the cost of a home, such as the price per square foot.
Fact: An appraisal is an assertion of information based on the house's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can count on Graham Appraisal's appraisers to be honest in assessing this data.
Myth: As houses appreciate by a specific percentage - in a robust economic state - the houses nearby are figured to increase by the same amount.
Fact: All increase of price is on an individual basis, found by information on relevant conditions and the data of comparable houses. It makes no difference if the economy is excellent or on the decline.
Have other questions about appraisers, appraising or real estate in Barren County or Glasgow, KY?Contact us
Myth: Just examining what the home looks like on its exterior gives an excellent idea of its worth.
Fact: To find an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these variables can be found simply by inspecting the property from the exterior.
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 provided appraisal report.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given one by their lending agency.
Myth: There's no need for home buyers to even care about what the report contains so long as their lending agency is satisfied.
Fact: It is very important for consumers to go through a copy of their report so that they can double-check the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, as it contains an exorbitant amount of information - 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 proximity.
Myth: The only reason someone would order an appraisal is if a home needs its value estimated in a lender sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a multitude 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 don't need to get an appraisal if you order a home inspection.
Fact: An appraisal does not fulfill the same purpose as an inspection report. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. The task of a home inspector is to approximate the condition of the property and its major components, then compose a report on these inspection.