Appraisal myths debunked

By law, an appraiser must be state-licensed to offer appraisals for federally-related sales. You have the ability to request a copy of the finished report from your lender. Contact us if you have any questions about the appraisal procedure.

Myth: Assessed value should be similar to to market value.

Fact: It might be that Florida, like most states, supports the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are excellent examples of why the price can vary.

Myth: The buyer or the seller often will have leverage in the value of the property depending upon for whom the appraiser is working.

Fact: The appraiser has no vested interest in the result of the appraisal and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: Market value will equate to replacement cost.

Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under undue influence to buy or sell. If the house were reconstructed, the dollar amount necessary to do so would make up the replacement cost.

Myth: Appraisers use a formula, like a certain price per square foot, to come to the worth of a house.

Fact: An appraisal is a collection of information based on the home's size, location, proximity to specific facilities, the condition of the house and the cost of recent comparable sales. You can depend on Appraisal Services of Brandon, Inc .'s staff to be professional in assessing this data.

Myth: When the economy is on the rise and the cost of homes are found to be rising by a certain percentage, the other houses in the vicinity can be expected to increase based on that same percentage.

Fact: Any value at which an appraiser arrives concerning a particular home is always individualized, based on certain factors derived from the data of comparable properties and other considerations within the home itself. This is true in strong economic times as well as poor.

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

Fact: Property worth is determined by a multitude of variables, including location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply inspecting the property from the outside.

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

Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal. Home buyers must be supplied with a version of the document upon written request because of the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even worry about what the report contains so long as their lending institution is fine with the contents therein.

Fact: A consumer should definitely read through their appraisal; there could be some questions or some worries about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, as it contains an incredible amount of information - including, but 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.