Appraisal myths & facts
It is mandated by the government that an appraiser is required to be state-licensed to create appraisal reports for federally-related real estate sales in New York. Also by law, you have the right to demand a copy of the finished report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser is required to be equivalent to the market value.
Fact: It is probable that New York, 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 reconstruction has occurred and the assessor has not seen the improvements, or when houses in the area have not been reassessed for an extended time.
Myth: The value of a house will differ depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The value of the house does not affect the pay of the appraiser; because of this, the appraiser has no vested interest in the worth of the property. This means that he will provide job with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: The replacement value of the house is always is on par with the market value.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under duress to buy or sell. The dollar amount demanded to reconstruct a house is what constitutes the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the cost of a property.
Fact: Appraisers make a detailed analysis of all factors pertaining to the cost of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.
Myth: As homes increase their worth by a certain percentage - in a strong economic state - the houses nearby are figured to appreciate by the same amount.
Fact: Any worth at which an appraiser arrives concerning a specific property is always personalized, based on certain factors pulled from the information of comparable houses and other considerations within the property itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?Contact our professional staff
Myth: Just looking at what the home looks like on the outside gives a good idea of its worth.
Fact: Property worth is determined by a number of factors, including area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply viewing the property from the outside.
Myth: Since the consumer is the one who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Legally, the document is owned by the lending company unless the lender releases their interest in the document. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be given it by their lender.
Myth: Home buyers need not care about what is in their appraisal so long as it exceeds the needs of their lending company.
Fact: A home buyer should definitely read through their document; there may be some questions or some concerns about the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, since it contains an incredible amount of information - 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 order an appraisal unless you are trying to get an estimate of the worth of a home during a sales transaction involving a lending institution.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a multitude of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The task of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. House inspectors will produce a report that will determine the condition of the home and its major components and possible damage.