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Common myths about appraising

By law, an appraiser needs to be state-licensed to perform appraisals for federally-related sales. The law entitles you to acquire a copy of your finished appraisal from your lending agency after it has been produced. Contact us if you have any questions about the appraisal procedure.

Myth: Market value will always be the same as the assessed value of the property.

Fact: While most states back the concept that assessed value is the same as estimated market value, this commonly is not the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby homes are exact examples of why there might be a differential in price.

Myth: The buyer or the seller will have an influence in the cost of the house depending upon for whom the appraiser is working.

Fact: The appraiser has no personal interest in the result of the appraisal report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.

Myth: Market value should approximate replacement cost.

Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. If the home were reconstructed, the dollar amount required to do so would form the replacement cost.

Myth: There are specific ways that real estate appraisers use to determine the opinion of value of a house, such as the price per square foot.

Fact: There are many varied formulae that an appraiser will use to make a comprehensive analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the sales price of recently sold comparable homes.

Myth: In a robust economy - when the sales prices of houses in a given county are reported to be rising by a certain percentage - the worth of individual homes in the area can be expected to increase by that same percentage.

Fact: All appreciation of worth is on an individual basis, determined by information on relevant elements and the data of comparable homes. This is true in strong economic times as well as poor.

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

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Myth: The house's exterior is determinate of the actual price of the home; it is unnecessary to do an interior appraisal.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection obviously can't provide all of the data needed.

Myth: Since you're the one funding for the appraisal report when applying for the loan to buy or refinance your house, you own the produced appraisal report.

Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be supplied with a copy of the report upon written request due to the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the report so long as it satisfies the needs of their lending agency.

Fact: A home buyer should definitely inspect their appraisal report; there could be some questions or some worries about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an incredible amount of 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 area.

Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a property during a sales transaction involving a lending agency.

Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: You don't need to get an appraisal if you get a home inspection.

Fact: Appraisal reports are nothing like a home inspection report. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. The task of a home inspector is to find the condition of the home and its main components, then compose a report on these findings.