Common myths about appraising
It is required by the government that a real estate appraiser is required to be state-licensed to offer appraisal reports for federally-supported property sales in Oklahoma. The law allows you to acquire a copy of your finished appraisal from your lender after it has been produced. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value should always be equal to market value.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. Often when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Lawton have not been reassessed for quite some time, it may vary wildly.
Myth: The value of a property will change depending upon whether the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is established, it should equate to the replacement cost of the home.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a specific property, with neither being under undue influence to buy or sell. The dollar amount required to reconstruct a property is what forms the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the cost of a house, such as the price per square foot.
Fact: There are many different formulae that an appraiser will use to make an in-depth analysis of every factor pertaining to the property, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable homes.
Myth: As homes increase their worth by a specific percentage - in a strong economy - the houses in proximity are figured to increase by the same amount.
Fact: Value increase of a certain property has to be determined on a case-by-case basis, factoring in data on comparable properties and other relevant specifications within the home itself. It makes no difference whether the economy is excellent or bad.
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Myth: The home's outside is determinate of the actual price of the home; there is no need to do an interior inspection.
Fact: To find an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information needed.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal report.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal. Consumers have to be given a copy of the document upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the necessities of their lending agency.
Fact: It is a very good idea for home buyers to look at a copy of their report so that they can double-check the accuracy of the report, in case there is a need to question its veracity. 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, as it contains an incredible amount 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 proximity.
Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of necessities 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: There's no need to get an appraisal if you order a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through writing the report. House inspectors will write a report that will show the condition of the property and its major components and possible damage.