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Common myths about appraising

Legally, an appraiser is required to be state certified to perform legitimate real estate appraisals for federally-related transactions. You have the ability to acquire a copy of the completed report from your lender. Contact us if you have any concerns about the appraisal process.

Myth: The value that is ascertained by the appraiser must be equivalent to the market value.

Fact: While most states support the concept that assessed value is the same as estimated market value, this usually is not the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby properties are perfect examples of why there might be a differential in price.

Myth: Depending on if the appraisal is ordered for the buyer or the seller, the value of the home will vary.

Fact: The opinion of value of the house does not affect the salary of the appraiser; as such, the appraiser has no personal interest in the value of the home. Obviously, he will render business with impartiality and objectivity regardless for whom the appraisal is created.

Myth: The replacement cost of the house will be is on par with the market value.

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under pressure to buy or sell. The dollar amount necessary to reconstruct a house is what forms the replacement cost.

Myth: Certain methods, such as the price per square foot of the property, are the ways appraisers use to arrive at the price of a property.

Fact: An appraisal report is a collection of information based on the property's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can rely on Barnes Appraisal Company's appraisers to be professional in assessing this data.

Myth: As properties appreciate by a specific percentage - in a robust economic state - the homes in proximity are expected to appreciate by the same amount.

Fact: Value increase of a certain home must be determined on an individualized basis, factoring in information on comparable properties and other relevant specifications within the property itself. This is true in good economic times as well as bad.

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

Contact Barnes Appraisal Company

Myth: The property's exterior is determinate of the actual value of the house; there is no need to do an interior appraisal.

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. As you can see, none of these things can be derived just by examining the house from the exterior.

Myth: Considering that the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even concern themselves with what the appraisal contains so long as their lender is fine with the contents therein.

Fact: It is very important for home buyers to read a copy of their appraisal so that they can verify the accuracy of the document, in case they need to question its veracity. 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, since it contains an incredible amount of data - including, but certainly 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: Appraisers are hired only to assess house values in home sales involving mortgage-lending deals.

Fact: Appraisers can have many different qualifications and designations which allow them to provide a multitude of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: An appraisal is no different than a home inspection.

Fact: A home inspection report has a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting report. A home inspector assesses the condition of the property and its major components and reports these findings.