Common myths about appraising

It is enforced by law that an appraiser must be state-licensed to write appraisals for federally-supported property sales in New York. The law gives you the right to get a copy of your completed appraisal from your lender after it has been produced. Contact Sirius Appraisal Services if you have any concerns about the appraisal process.

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

Fact: While most states uphold the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended time.

Myth: The opinion of value of a house will differ depending upon whether the appraisal is provided for the buyer or the seller.

Fact: There is no vested interest on the part of the appraiser in the outcome of the appraisal report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is ordered.

Myth: Market value should be the same as replacement cost.

Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific property. The dollar amount required to reconstruct a home is what shows the replacement cost.

Myth: Certain formulae, such as the price per square foot of the property, are the methods appraisers use to come to the worth of a property.

Fact: There are many numerous methods that an appraiser will use to make an in-depth analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable properties.

Myth: When the economy is robust and the worth of homes are reported to be appreciating by a certain percentage, the other properties in the area can be expected to rise based on that same percentage.

Fact: All appreciation of worth is on an individual basis, concluded by information on relevant elements and the data of comparable homes. It makes no difference if the economy is powerful or bad.

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

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Myth: You can commonly find what a house is worth simply by looking at the exterior.

Fact: Home value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by viewing the property from the outside.

Myth: Because the consumer is the person who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.

Fact: The report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal. By the Equal Credit Opportunity Act, any consumer demanding a copy of the appraisal report must be provided with it by their lending company.

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

Fact: Only if home buyers examine a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an appraisal that can be useful to the home buyer 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 region.

Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the worth of a home during a sales transaction involving a lender.

Fact: Appraisers can have many different qualifications and designations which allow them to perform 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: A home inspection serves the same purpose as an appraisal.

Fact: A home inspection report serves a completely different purpose than an appraisal. The purpose of the appraiser is to form an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the property and its major components and reports these findings.