Common myths about appraising
It is mandated by law that an appraiser must be state-licensed to offer appraisals for federally-related property transactions in Oklahoma. The law entitles you to acquire a copy of your finished appraisal report from your lender after it has been produced. Contact us if you have any questions about the appraisal procedure.
Myth: Market value will be similar to the assessed value of the property.
Fact: While most states uphold the idea that assessed value is equal to estimated market value, this often is not the case. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended period.
Myth: The buyer or the seller often will have an influence in the cost of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is found, it should be the same as the replacement cost of the home.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. If the house were rebuilt, the dollar amount necessary to do so would be the replacement cost.
Myth: There are certain ways that appraisers use to find the value of a property, such as the price per square foot.
Fact: Appraisers make a comprehensive analysis of all factors pertaining to the value of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.
Myth: As houses increase their worth by a certain percentage - in a strong economy - the properties in proximity are figured to appreciate by the same amount.
Fact: Any worth at which an appraiser concludes concerning a specific house is always personalized, based on certain factors found from the data of comparable homes and other specifications within the home itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact Barnes Appraisal Company
Myth: The home's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.
Fact: To determine an accurate price beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just looking at the home from the exterior.
Myth: Because the consumer is the party who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the report. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with one by their lender.
Myth: Home buyers need not care about what is in their document so long as it meets the necessities of their lending company.
Fact: It is very important for consumers to look at a copy of their appraisal report so that they can verify the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, comprised of useful and often-revealing information - including 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 order an appraisal is if a home needs its cost assessed in a lender sales transaction.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't have to get an appraisal if you have had a home inspection.
Fact: Appraisal reports are nothing like a home inspection report. The purpose of an appraisal is to find an opinion of fair market value during the appraisal process and the production of the report. House inspectors will compose a report that will explain the condition of the home and its major components and possible damage.