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Appraisal myths debunked

Legally, an appraiser has to be state certified to produce substantiated real estate appraisals for federally-backed purchase. Also by law, you are allowed to request a copy of the completed appraisal report from your lending agency. Contact Barnes Appraisal Company if you have any concerns about the appraisal procedure.

Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.

Fact: It is probable that Oklahoma, like most states, supports the suggestion that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Generally when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Lawton have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the appraised value of the property will vary.

Fact: The opinion of value of the home does not affect the payment of the appraiser; as such, the appraiser has no personal interest in the value of the house. What this means is he will conduct services with impartiality and objectivity regardless for whom the appraisal is provided.

Myth: Market value will equal replacement cost.

Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a home without being under influence from any outside party to purchase or sell. If the home were reconstructed, the dollar amount necessary to do so would make up the replacement cost.

Myth: There are specific ways that real estate appraisers use to determine the opinion of value of a home, such as the price per square foot.

Fact: There are many numerous calculations that an appraiser will use to make a detailed analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable houses.

Myth: In a strong economy - when the values of properties in a given county are reported to be increasing by a certain percentage - the prices of individual houses in the proximity can be expected to appreciate by that same percentage.

Fact: All appreciation of price is on a case-by-case basis, concluded by data on relevant conditions and the data of comparable homes. It makes no difference if the economy is strong or bad.

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

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

Fact: There are a number of different factors that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just inspecting the home from the outside.

Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance your house, you own the ordered appraisal.

Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Consumers have to be supplied with a copy of the report through request as per the Equal Credit Opportunity Act.

Myth: Consumers need not worry about what is in their appraisal document so long as it meets the needs of their lending institution.

Fact: A consumer should definitely read through their appraisal report; there might be some questions or some concerns with the accuracy of the report that should be addressed. 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, containing 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 vicinity.

Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the worth of a home during a sales transaction involving a lending institution.

Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: An appraisal is the same as a home inspection.

Fact: Appraisal reports are nothing like a home inspection. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. The purpose of a home inspector is to assess the condition of the property and its main components, then compose a report on these findings.