Common myths about appraising

It is mandated by legal agencies that an appraiser must be state-licensed to produce appraisals for federally-supported real estate sales in New York. The law gives you the right to get a copy of your finished appraisal report from your lender after it has been provided. Contact Sirius Appraisal Services if you have any questions about the appraisal process.

Myth: Assessed value should be similar to to market value.

Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. There are times when interior remodeling has been done and the assessor is not aware of the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary wildly.

Myth: The appraised value of a property will change depending upon whether the appraisal is ordered for the buyer or the seller.

Fact: The value of the property does not affect the pay of the appraiser; due to this, the appraiser has no pressured interest in the cost of the home. What this means is he will complete his task with impartiality and independence regardless for whom the appraisal is conducted.

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

Fact: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any external group to purchase or sell. Replacement cost is the dollar amount required to rebuild a home in-kind.

Myth: Certain formulae, like the price per square foot, are what appraisers use to come to the price of a property.

Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to certain facilities, the condition of the property and the price of recent comparable sales. You can depend on Sirius Appraisal Services's appraisers to be forthright in assessing this data.

Myth: In a strong economy - when the prices of homes in a given area are reported to be appreciating by a certain percentage - the costs of individual properties in the proximity can be expected to appreciate by that same percentage.

Fact: All appreciation of price is on a one-on-one basis, concluded by information on relevant elements and the data of comparable properties. It makes no difference whether the economy is excellent or terrible.

Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?

Contact Sirius Appraisal Services

Myth: You can generally see what a house is worth simply by looking at the outside.

Fact: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived just by examining the property from the outside.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal.

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Home buyers must be supplied with a copy of the report through request as per the Equal Credit Opportunity Act.

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

Fact: It is a very good idea for consumers to go through a copy of their appraisal so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an appraisal that should be useful to the consumer in the future, such as 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 vicinity.

Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.

Fact: Depending upon their qualifications and designations, appraisers can and may perform a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal report is the same as a home inspection.

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