Appraisal myths debunked

Legally, a real estate appraiser must be state certified to perform legitimate real estate appraisals for federally-related transactions. Also by law, you have the right to request a copy of the completed appraisal from your lender. Contact Company Name 2 if you have any questions about the appraisal procedure.

Myth: Market value will always be similar to the assessed value of the property.

Fact: It might be that , like most states, supports the idea that the assessed value is the same as the market value; however, this is not always true. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an prolonged time.

Myth: The buyer or the seller can have some pull in the cost of the home depending upon for whom the appraiser is working.

Fact: The cost of the house does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the value of the house. What this means is he will conduct job with impartiality and independence regardless for whom the appraisal is conducted.

Myth: The replacement value of the house will be is on par with the market value.

Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. Replacement cost is the dollar amount necessary to reconstruct a home in-kind.

Myth: There are specific methods that appraisers use to show the value of a property, such as the price per square foot.

Fact: Appraisers make a full analysis of all factors pertaining to the price of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.

Myth: In a powerful economy - when the sales prices of homes in a given area are found to be increasing by a certain percentage - the costs of individual homes in the area can be expected to increase by that same percentage.

Fact: Any cost at which an appraiser concludes concerning a particular house is always individualized, based on certain factors concluded from the data of comparable houses and other considerations within the home itself. It doesn't matter if the economy is on the rise or declining.

Myth: Just examining what the property looks like on the outside gives an idea of its worth.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from just looking at the home from the exterior.

Myth: Since you're the one paying for the appraisal when applying for the loan to buy or refinance your house, 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. However, consumers have to be given a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.

Myth: It doesn't mean anything to consumers what's in the report so long as it meets the needs of their lending agency.

Fact: It is very important for home buyers to go through a copy of their appraisal report so that they can double-check the accuracy of the document, 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 appraisal can serve as a record for the future, as it contains a great deal of data - 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.