Appraisal myths & facts
By law, an appraiser must be state-licensed to produce appraisals for federally-related sales. Also by law, you have the ability to receive a copy of the finished appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value must be equivocal to the assessed value of the property.
Fact: While most states uphold the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when homes in the vicinity have not been reassessed for an prolonged period of time.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the property will vary.
Fact: The appraiser has no personal interest in the result of the report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the house will be is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a house without being under duress from any external group to purchase or sell. 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 certain price per square foot, to figure out the value of a property.
Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to certain facilities, the condition of the house and the worth of recent comparable sales. You can count on Elite Appraisal Services's appraisers to be forthright in assessing this information.
Myth: As properties appreciate by a certain percentage - in a robust economic state - the properties in proximity are figured to appreciate by the same amount.
Fact: Any value at which an appraiser concludes concerning a certain house is always individualized, based on certain factors found from the information of comparable houses and other specifications within the house itself. It makes no difference whether the economy is robust or bad.
Have other questions about appraisers, appraising or real estate in Brazoria County or Pearland, TX?Contact Elite Appraisal Services
Myth: You can often see what a property is worth simply by looking at the outside.
Fact: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by looking at the home from the outside.
Myth: Since the consumer is the person who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers have to be given a copy of the document upon written request, due to the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal report contains so long as their lending institution is fine with the contents therein.
Fact: A home buyer should definitely read through their report; there will probably be some questions or some worries with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an report that will probably 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: Appraisers are hired only to assess real estate property values in property sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you get a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal. The function of an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. The task of a home inspector is to assess the condition of the home and its main components, then write a report on these conclusions.