Common myths about appraising
It is required by law that an appraiser needs to be state-licensed to write appraisals for federally-related real estate sales in Texas. Also by law, you are allowed to request a copy of the finished appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.
Fact: It is probable that Texas, like most states, supports the suggestion that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Sometimes when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The value of a property will vary depending upon if the appraisal is produced for the buyer or the seller.
Fact: The cost of the home does not affect the payment of the appraiser; as such, the appraiser has no pressured interest in the worth of the house. Obviously, he will complete his job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: The replacement cost of the house is always is on par with the market value.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a home without being under pressure from any external group to buy or sell. If the property were reconstructed, the dollar amount required to do so would be the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to come to the cost of a home.
Fact: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to specific facilities, the condition of the house and the worth of recent comparable sales. You can rely on Elite Appraisal Services's appraisers to be professional in assessing this information.
Myth: When the economy is on the rise and the cost of homes are reported to be increasing by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Fact: Value increase of a specific house is always concluded on a case-by-case basis, factoring in data on comparable houses and other relevant elements. 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: Just seeing what the house looks like on the outside gives an idea of its cost.
Fact: House worth is concluded by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply inspecting the house from the exterior.
Myth: Since you're the one funding for the appraisal when applying for your loan to buy or refinance real estate, you own the ordered appraisal.
Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. However, consumers must be provided with a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even concern themselves with what the appraisal contains so long as their lending institution is fine with the contents therein.
Fact: A consumer should definitely read through their document; there could be some questions or some concerns with the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, since it contains an incredible 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 vicinity.
Myth: The only reason someone would order an appraisal is if a home needs its value assessed in a lender-based sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. The task of a home inspector is to find the condition of the house and its major components, then compose a report on their conclusions.