Appraisal myths & facts
Legally, an appraiser is required to be state certified to create legitimate real estate appraisals for federally-related sales. Also by law, you are allowed to demand a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should always be the same as to market value.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby houses are prime examples of why the price can vary.
Myth: The opinion of value of a house will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: The value of the house does not affect the pay of the appraiser; as such, the appraiser has no vested interest in the value of the property. This means that he will provide task with impartiality and independence regardless for whom the appraisal is provided.
Myth: The replacement value of the home should be is on par with the market value.
Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular home. The dollar amount necessary to rebuild a home is what forms the replacement cost.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the worth of a house.
Fact: An appraisal is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the property and the price of recent comparable sales. You can rely on Barnes Appraisal Company's appraisers to be ethical in assessing this information.
Myth: As houses increase their worth by a certain percentage - in a strong economy - the properties within the same neighborhood are figured to increase by the same amount.
Fact: Any worth at which an appraiser arrives concerning a certain property is always individualized, based on certain factors pulled from the data of comparable houses and other specifications within the home itself. It makes no difference whether the economy is excellent or on the decline.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact our professional staff
Myth: Just examining what the property looks like on the outside gives a good idea of its value.
Fact: Home value is determined by a number of variables, including area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by inspecting the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance real estate, they own their appraisal.
Fact: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the appraisal. Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be given it by their lending company.
Myth: There's no need for home buyers to even worry about what the report contains so long as their lending company is satisfied.
Fact: It is a very good idea for consumers to go through a copy of their appraisal so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an appraisal that should be useful to the consumer in the future, such as 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: Appraisers are hired only to estimate house values in property sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of needs 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: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal report. An appraiser finds an opinion of value in the appraisal process and resulting document. House inspectors will produce a report that will explain the condition of the home and its major components and possible damage.