Appraisal myths debunked
Legally, an appraiser has to be state certified to produce substantiated appraisal reports for federally-supported purchase. The law allows you to acquire a copy of your finished report from your lending agency after it has been provided. Contact our professional staff if you have any questions about the appraisal process.
Myth: Market value should be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby homes are prime examples of why this occurs.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the property will vary.
Fact: The opinion of value of the house does not affect the salary of the appraiser; because of this, the appraiser has no pressured interest in the value of the house. What this means is he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is established, it should be similar to the replacement cost of the property.
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 particular property. If the home were reconstructed, the dollar amount necessary to do so would form the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to conclude the cost of a house.
Fact: An appraisal report is an amalgamation of information concluded from the house's size, location, proximity to specific facilities, the condition of the home and the value of recent comparable sales. You can rely on Elite Appraisal Services's appraisers to be professional in assessing this data.
Myth: As homes appreciate by a specific percentage - in a strong economy - the properties nearby are figured to increase by the same amount.
Fact: All increase of price is on an individual basis, concluded by data on relevant conditions and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Brazoria County or Pearland, TX?Contact us
Myth: You can often see what a home is worth simply by looking at the exterior.
Fact: House value is determined by a multitude of variables, including area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found just by examining the property from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance real estate, they legally own their appraisal report.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the appraisal. However, consumers must be provided with a copy of the report upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even care about what the report contains so long as their lending institution is fine with the contents therein.
Fact: A home buyer should definitely read through their document; there may be some questions or some worries about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal that could 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 proximity.
Myth: Appraisals are ordered only to estimate house values in home sales involving mortgage-lending deals.
Fact: Based upon their qualifications and designations, appraisers can and will perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection.
Fact: Appraisal reports are completely different than a home inspection report. The job of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report. House inspectors will write a report that will determine the condition of the home and its major components and possible damage.