Appraisal myths debunked
Legally, an appraiser needs to be state certified to write substantiated real estate appraisals for federally-backed transactions. Also by law, you are allowed to request a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal process.
Myth: Assessed value generally will be the same as to market value.
Fact: It could be that Oklahoma, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not often the case. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller can have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the report and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value should equate to replacement cost.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any outside party to buy or sell. Replacement cost is the dollar amount needed to reconstruct a home in-kind.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the value of a home.
Fact: There are many varied processes that an appraiser will use to make an in-depth analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the worth of recently sold comparable homes.
Myth: In a strong economy - when the worth of properties in a given area are found to be appreciating by a certain percentage - the costs of individual properties in the area can be expected to increase by that same percentage.
Fact: Worth increase of a specific home has to be concluded on a case-by-case basis, factoring in data on comparable properties 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 our professional staff
Myth: The house's outside is determinate of the actual worth of the home; there is no need to do an interior inspection.
Fact: To conclude an accurate value beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these factors can be found just by inspecting the property from the outside.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. Home buyers have to be given a version of the appraisal report through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal document so long as it satisfies the needs of their lending agency.
Fact: It is almost imperative for home buyers to peruse a copy of their report so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since it contains an exorbitant amount of information - 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: Appraisals are ordered only to estimate house values in house sales involving mortgage-lending transactions.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You shouldn't need to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection report. The reason behind an appraisal report is to find an opinion of fair market value during the appraisal process and the production of the appraisal report. House inspectors will write a report that will determine the condition of the home and its major components and possible damage.