Appraisal myths debunked
Legally, a real estate appraiser has to be state certified to create substantiated appraisal reports for federally-backed sales. Also by law, you have the ability to request a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value must be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. At times when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller sometimes may have some pull in the cost of the property depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is found, it should be similar to the replacement cost of the house.
Fact: Without any influence from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. The replacement cost is the dollar amount needed to rebuild a home in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the ways appraisers use to arrive at the worth of a home.
Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to undesirable facilities, the condition of the house and the price of recent comparable sales. You can rely on Sirius Appraisal Services's appraisers to be ethical in assessing this data.
Myth: As houses increase their worth by a certain percentage - in a strong economic state - the homes in proximity are figured to appreciate by the same amount.
Fact: All increase of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable homes. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?Contact Sirius Appraisal Services
Myth: The home's exterior is determinate of the actual value of the property; there is no need to do an interior appraisal.
Fact: To find an accurate value beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived simply by viewing the home from the exterior.
Myth: Since the consumer is the party who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. By the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be given one by their lending agency.
Myth: Consumers need not be concerned with what is in their document so long as it exceeds the necessities of their lending institution.
Fact: It is almost imperative for consumers to go through a copy of their appraisal report so that they can verify the accuracy of the document, in case there is a 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, since it contains an incredible amount 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: Appraisers are hired only to assess building values in home sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.