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Common myths about appraising

Legally, a real estate appraiser must be state certified to write substantiated real estate appraisals for federally-backed purchase. You have the ability to demand a copy of the completed appraisal from your lending agency. Contact Barnes Appraisal Company if you have any questions about the appraisal procedure.

Myth: Assessed value should always be equal to market value.

Fact: While most states support the concept that assessed value equates estimated market value, this usually is not the case. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby houses are exact examples of why there might be a differential in price.

Myth: Depending on if the appraisal is done for the buyer or the seller, the cost of the property will vary.

Fact: The appraiser has no vested interest in the outcome of the report and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

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

Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under duress to buy or sell. The dollar amount needed to reconstruct a home is what forms the replacement cost.

Myth: Specific formulae, such as the price per square foot, are what appraisers use to ascertain the price of a home.

Fact: Appraisers complete a comprehensive analysis of all factors pertaining to the worth of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.

Myth: In a robust economy - when the values of properties in a given neighborhood are reported to be increasing by a certain percentage - the prices of individual houses in the area can be expected to increase by that same percentage.

Fact: All increase of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes. It makes no difference if the economy is robust or terrible.

Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?

Contact Barnes Appraisal Company

Myth: The property's outside is determinate of the actual price of the home; there is no need to do an interior appraisal.

Fact: House value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived just by viewing the home from the outside.

Myth: Since the consumer is the party who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Unless a lender releases its interest in the document, it is legally owned by the lending company that ordered the appraisal. However, consumers have to be provided with a copy of the document upon written request, under the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their document so long as it satisfies the necessities of their lending agency.

Fact: Only if consumers look at a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, containing a great deal of information - 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 area.

Myth: The only reason someone would order an appraisal is if a property needs its cost estimated in a lender-based sales transaction.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a variety 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 house inspection serves the same purpose as an appraisal.

Fact: Appraisal reports are definitely not the same as a home inspection report. An appraiser decides upon an opinion of value in the appraisal process and resulting document. The point of a home inspector is to find the condition of the property and its major components, then create a report on their findings.