Common myths about appraising

It is mandated by the government that a real estate appraiser needs to be state-licensed to write appraisal reports for federally-related property transactions in New York. You also have the right to demand a copy of the completed appraisal from your lender. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: Assessed value will always be the same as to market value.

Fact: It is probable that New York, like most states, validates the common myth that the assessed value equates to the market value; however, this is not always true. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Jamaica Estates have not been reassessed for quite some time, it may vary wildly.

Myth: The buyer or the seller often will have impact in the cost of the house depending upon for whom the appraiser is working.

Fact: The appraiser has no personal interest in the result of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.

Myth: The replacement cost of the property should be is on par with the market value.

Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. If the home were rebuilt, the dollar amount needed to do so would set the replacement cost.

Myth: There are specific methods that real estate appraisers use to determine the cost of a home, such as the price per square foot.

Fact: There are many different formulae that an appraiser will use to make a comprehensive investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to certain facilities and the sales price of recently sold comparable properties.

Myth: In a strong economy - when the values of houses in a given county are found to be appreciating by a certain percentage - the values of individual homes in the area can be expected to increase by that same percentage.

Fact: Any worth at which an appraiser arrives concerning a particular home is always individualized, based on certain factors concluded from the information of comparable homes and other considerations within the home itself. It makes no difference if the economy is robust or on the decline.

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Myth: Just looking at what the house looks like on the outside gives an idea of its worth.

Fact: Home worth is concluded by a multitude of variables, including location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found simply by viewing the property from the outside.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance real estate, they own their appraisal report.

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be provided with a copy of the document upon written request as per the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even worry about what the appraisal contains so long as their lender is fine with the contents therein.

Fact: It is almost imperative for consumers to read a copy of their report so that they can double-check the accuracy of the report, in case they need to question its veracity. 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 area.

Myth: Appraisals are ordered only to estimate building values in home sales involving mortgage-lending deals.

Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: You don't have to get an appraisal if you have had a home inspection.

Fact: A home inspection report has a completely different purpose than an appraisal. The point of an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the completion of the appraisal report. The purpose of a home inspector is to approximate the condition of the property and its main components, then provide a report on these inspection.