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Appraisal myths & facts

It is mandated by legal agencies that a real estate appraiser needs to be state-licensed to create appraisal reports for federally-supported real estate purchases in Oklahoma. You are also entitled by law to demand a copy of the completed appraisal report from your lender. Contact Barnes Appraisal Company if you have any concerns about the appraisal procedure.

Myth: Market value will be equivocal to the assessed value of the property.

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. Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an extended period.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the cost of the property will vary.

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

Myth: The replacement value of the home is always is on par with the market value.

Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under pressure from any outside group to buy or sell. The dollar amount demanded to reconstruct a house is what forms the replacement cost.

Myth: Certain methods, like the price per square foot of the property, are what appraisers use to determine the price of a home.

Fact: An appraisal is an amalgamation of information concluded from the home's size, location, proximity to certain facilities, the condition of the house and the cost of recent comparable sales. You can depend on Barnes Appraisal Company's appraisers to be professional in assessing this information.

Myth: When the economy is robust and the value of homes are reported to be appreciating 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, concluded by data on relevant conditions and the data of comparable homes. It doesn't matter if the economy is on the rise or declining.

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

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

Fact: There are a multitude of different variables that determine property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found just by examining the home from the exterior.

Myth: Because the consumer is the party who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Legally, the appraisal is owned by the lender unless the lender relinquishes their interest in the document. Home buyers have to be given a copy of the report upon written request as per the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their report so long as it exceeds the necessities of their lending company.

Fact: Only if consumers read 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. Also, the appraisal report makes an invaluable record for future reference, filled with helpful and often-revealing data - including 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: Appraisers are hired only to estimate house values in house sales involving mortgage-lending transactions.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: An appraisal report is no different than a home inspection report.

Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. The job of a home inspector is to determine the condition of the property and its main components, then produce a report on these findings.