Appraisal myths & facts
It is mandated by legal agencies that a real estate appraiser must be state-licensed to create appraisal reports for federally-supported home transactions in . The law entitles you to acquire a copy of your finished report from your lender after it has been provided. Contact our professional staff if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser is required to be equivalent to the market value.
Fact: While most states support the concept that assessed value approximates estimated market value, this often is not the case. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller often will have some pull in the value of the house depending upon for whom the appraiser is working.
Fact: The appraised value of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the house. What this means is he will provide business with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is found, it should be similar to the replacement cost of the house.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. The replacement cost is the dollar amount needed to rebuild a house in-kind.
Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the worth of a property.
Fact: There are many different calculations that an appraiser will use to make a full investigation of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the sales price of recently sold comparable homes.
Myth: In a robust economy - when the costs of houses in a given neighborhood are reported to be appreciating by a certain percentage - the costs of individual properties in the vicinity can be expected to rise by that same percentage.
Fact: Value increase of a certain house must be determined on an individualized basis, factoring in information on comparable properties and other relevant considerations. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Ventura County or , ?Contact Choice Appraisals, Inc. (Owner retired to SC)
Myth: The house's exterior is determinate of the actual worth of the property; it is unnecessary to do an interior inspection.
Fact: There are a number of different variables that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just examining the property from the outside.
Myth: Since you're the one paying for the appraisal report when applying for your loan to purchase or refinance real estate, you own the produced appraisal report.
Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be provided with one by their lending company.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the necessities of their lending agency.
Fact: A home buyer should definitely read through their report; there may be some questions or some worries with the accuracy of the analysis that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since it contains an exorbitant amount of data - 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the cost of a house during a sales transaction involving a lender.
Fact: Based upon their qualifications and designations, appraisers can and will provide a variety 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 report.
Fact: A home inspection serves a completely different purpose than an appraisal. The job of the appraiser is to come to an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the house and its main components and reports these findings.