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Common myths about appraising

It is mandated by law that an appraiser needs to be state-licensed to offer appraisal reports for federally-supported real estate sales in Oklahoma. The law allows you to acquire a copy of your completed appraisal report from your lending agency after it has been produced. Contact Barnes Appraisal Company if you have any questions about the appraisal process.

Myth: The value that is ascertained by the appraiser should be the same as the market value.

Fact: While most states support the idea that assessed value approximates estimated market value, this usually is not the case. There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the area have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the house will vary.

Fact: There is no vested interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is written.

Myth: Market value will equate to replacement cost.

Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under duress to buy or sell. The replacement cost is the dollar amount required to reconstruct a home in-kind.

Myth: Appraisers use a formula, like a certain price per square foot, to come to the cost of a house.

Fact: An appraisal is a collection of information based on the home's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can count on Barnes Appraisal Company's staff to be ethical in assessing this data.

Myth: In a robust economy - when the sales prices of properties in a given neighborhood are reported to be increasing by a particular percentage - the costs of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: Any worth at which an appraiser arrives concerning a particular property is always personalized, based on certain factors found from the data of comparable properties and other specifications within the property itself. 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?

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Myth: You can often tell what a property is worth simply by looking at the exterior.

Fact: There are a number of different variables that determine property value; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information needed.

Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance real estate, they legally own their appraisal.

Fact: The report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. Consumers have to be given a version of the document upon written request because of the Equal Credit Opportunity Act.

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

Fact: Only if home buyers look at a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an appraisal that could be useful to the home buyer 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 region.

Myth: Appraisers are hired only to assess real estate property values in home sales involving mortgage-lending transactions.

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: You don't need to get an appraisal if you get a home inspection.

Fact: A home inspection report has a completely different purpose than an appraisal report. The job of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. A home inspector determines the condition of the home and its main components and reports their findings.