Common myths about appraising
Legally, an appraiser has to be state certified to perform substantiated appraisal reports for federally-backed purchase. You are also entitled by law to acquire a copy of the completed appraisal from your lending agency. Contact Appraisal Services of Brandon, Inc . if you have any questions about the appraisal procedure.
Myth: Assessed value should always be similar to to market value.
Fact: While most states support the idea that assessed value approximates estimated market value, this usually is not the case. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an extended time.
Myth: The buyer or the seller sometimes may have some pull in the value of the house depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: The replacement value of the property should be is on par with the market value.
Fact: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular home. Replacement cost is the dollar amount necessary to rebuild a home in-kind.
Myth: Specific formulae, like the price per square foot of the property, are the ways appraisers use to determine the worth of a house.
Fact: An appraisal report is an amalgamation of data based on the house's size, location, proximity to certain facilities, the condition of the house and the cost of recent comparable sales. You can count on Appraisal Services of Brandon, Inc .'s appraisers to be forthright in assessing this data.
Myth: As homes appreciate by a certain percentage - in a strong economic state - the houses nearby are figured to appreciate by the same amount.
Fact: All increase of value is on a case-by-case basis, found by data on relevant conditions and the data of comparable properties. It makes no difference whether the economy is robust or poor.
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Myth: The home's outside is determinate of the actual value of the property; it is unnecessary to do an interior inspection.
Fact: Home worth is determined by a multitude of factors, including area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply looking at the property from the exterior.
Myth: Since the consumer is the person who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. However, home buyers have to be given a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal report so long as it exceeds the necessities of their lending institution.
Fact: It is almost imperative for consumers to look at a copy of their appraisal so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an appraisal report that will probably be useful to the consumer 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: Appraisals are ordered only to assess house values in house sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and may perform a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is the same as a home inspection.
Fact: Appraisal reports are completely different than a home inspection report. The appraiser decides upon an opinion of value in the appraisal process and resulting report. House inspectors will create a report that will explain the condition of the property and its major components and possible damage.