Appraisal myths & facts
Legally, a real estate appraiser must be state certified to write legitimate real estate appraisals for federally-supported purchase. The law entitles you to get 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: The value that is ascertained by the appraiser is required to be the same as the market value.
Fact: It is probable that Oklahoma, like most states, supports the idea that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended period of time.
Myth: The appraised value of a home will vary depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no vested interest in the result of the report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the home will be is on par with the market value.
Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home. The dollar amount required to rebuild a house is what constitutes the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the worth of a home.
Fact: Appraisers complete a comprehensive analysis of all factors pertaining to the value of a property, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.
Myth: When the economy is strong and the sales prices of properties are reported to be appreciating by a certain percentage, the other houses in the area can be expected to increase based on that same percentage.
Fact: Price appreciation of a specific property must be concluded on a case-by-case basis, factoring in data on comparable homes and other relevant elements. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact us
Myth: Just looking at what the home looks like on its exterior gives a good idea of its worth.
Fact: Property value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply viewing the home from the outside.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their property, they legally own their appraisal.
Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. By the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be given it by their lending company.
Myth: There's no point for consumers to even worry about what the report contains so long as their lending institution is fine with the contents therein.
Fact: Only if consumers look over a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, containing an exorbitant 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a home needs its cost estimated in a lender sales transaction.
Fact: Ordering an appraisal 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: An appraisal report is the same as a home inspection.
Fact: Appraisal reports are nothing like a home inspection report. The reason behind an appraisal report is to form an opinion of fair market value during the appraisal process and the production of the report. House inspectors will create a report that will show the condition of the house and its major components and possible damage.