Common myths about appraising
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-backed purchases. Also by law, you have the ability to demand a copy of the completed report from your lending agency. Contact our professional staff if you have any concerns 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. Generally 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 a while, it may vary wildly.
Myth: The buyer or the seller may have an influence in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the outcome of the appraisal and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. The dollar amount demanded to reconstruct a home is what forms the replacement cost.
Myth: Certain methods, like the price per square foot, are the ways appraisers use to determine the cost of a home.
Fact: There are many different ways that an appraiser will use to make a detailed analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable houses.
Myth: When the economy is doing well and the sales prices of homes are found to be rising by a certain percentage, the other homes in the vicinity can be expected to appreciate based on that same percentage.
Fact: All increase of price is on an individual basis, found by information on relevant considerations and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact Barnes Appraisal Company
Myth: Just looking at what the property looks like on the outside gives a good idea of its worth.
Fact: There are a multitude of different variables that determine the value of a house; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the data necessary.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance real estate, they legally own their appraisal report.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Home buyers have to be supplied with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even worry about what the appraisal contains so long as their lending company is fine with the contents therein.
Fact: It is very important for home buyers to check over a copy of their report so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an appraisal that will probably 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 area.
Myth: The only reason someone would order an appraisal is if a house needs its value estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of requirements 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 shouldn't need to get an appraisal if you have had a home inspection.
Fact: Appraisal reports are completely different than a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting document. A home inspector analyzes the condition of the home and its main components and reports their findings.