Appraisal myths debunked
It is mandated by law that an appraiser needs to be state-licensed to produce appraisals for federally-supported property sales in New York. You are also entitled by law to demand a copy of the finished report from your lending agency. Contact Sirius Appraisal Services if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser should be the same as the market value.
Fact: While most states back the concept that assessed value equates estimated market value, this generally is not the case. Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an extended period.
Myth: The value of a house will change depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.
Myth: Market value should approximate replacement cost.
Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the property were rebuilt, the dollar amount necessary to do so would be the replacement cost.
Myth: There are certain ways that appraisers use to determine the opinion of value of a home, like the price per square foot.
Fact: An appraisal is an amalgamation of information concluded from the property's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can depend on Sirius Appraisal Services's staff to be professional in assessing this data.
Myth: In a powerful economy - when the sales prices of houses in a given neighborhood are found to be appreciating by a particular percentage - the values of individual houses in the vicinity can be expected to appreciate by that same percentage.
Fact: All increase of price is on an individual basis, concluded by data on relevant conditions and the data of comparable homes. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?Contact Sirius Appraisal Services
Myth: The house's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.
Fact: Property worth is determined by a number of variables, including location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just inspecting the house from the outside.
Myth: Because the consumer is the one who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: The report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report. Home buyers have to be supplied with a copy of the document through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their report so long as it satisfies the necessities of their lending group.
Fact: A home buyer should definitely inspect their appraisal report; there may be some questions or some concerns about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable record for future reference, filled with useful and often-revealing data - 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 proximity.
Myth: The only reason someone would hire an appraiser is if a house needs its worth assessed in a lender-based sales transaction.
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: An appraisal report is no different than a home inspection report.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser forms an opinion of value in the appraisal process and resulting report. House inspectors will write a report that will show the condition of the home and its major components and possible damage.