Appraisal myths debunked
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-backed sales. You have the ability to demand a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value has to be equivocal to the assessed value of the property.
Fact: While most states back the suggestion that assessed value approximates estimated market value, this generally is not the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are exact examples of why this occurs.
Myth: Depending on whether the appraisal is done for the buyer or the seller, the value of the home will vary.
Fact: There is no personal interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: The replacement cost of the property is always is on par with the market value.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell. The dollar amount needed to reconstruct a home is what forms the replacement cost.
Myth: Specific formulae, such as the price per square foot, are the ways appraisers use to arrive at the value of a property.
Fact: There are many different calculations that an appraiser will use to make a full analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable houses.
Myth: When the economy is strong and the value of houses are reported to be rising by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.
Fact: Any worth at which an appraiser concludes concerning a specific property is always personalized, based on certain factors concluded from the data of comparable properties and other considerations within the home itself. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?Contact our professional staff
Myth: You can commonly tell what a home is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found simply by examining the property from the exterior.
Myth: Because the consumer is the person who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. Home buyers must be provided with a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal so long as it meets the needs of their lending agency.
Fact: It is a very good idea for home buyers to look at a copy of their appraisal so that they can verify the accuracy of the report, 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 report can double as a record for the future, containing a great deal 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 proximity.
Myth: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of needs 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: You shouldn't need to get an appraisal if you have had a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. The purpose of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal. The point of a home inspector is to determine the condition of the property and its major components, then compose a report on their conclusions.