Common myths about appraising
It is enforced by law that a real estate appraiser is required to be state-licensed to produce appraisals for federally-related property purchases in Florida. You also have the right to receive a copy of the finished appraisal from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value should be similar to the assessed value of the property.
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. Often when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Valrico have not been reassessed for a good length of time, it may vary wildly.
Myth: The opinion of value of a property will change depending upon if the appraisal is conducted for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Fact: Without any influence from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the home were reconstructed, the dollar amount necessary to do so would set the replacement cost.
Myth: Specific methods, like the price per square foot, are the ways appraisers use to come to the price of a property.
Fact: Appraisers make a comprehensive analysis of all factors pertaining to the cost of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.
Myth: In a powerful economy - when the values of properties in a given county are reported to be appreciating by a particular percentage - the worth of individual properties in the area can be expected to rise by that same percentage.
Fact: All appreciation of worth is on an individual basis, found by information on relevant elements and the data of comparable houses. It makes no difference if the economy is powerful or terrible.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact Appraisal Services of Brandon, Inc .
Myth: Just seeing what the home looks like on the outside gives a good idea of its worth.
Fact: Property value is concluded by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the property from the outside.
Myth: Because the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Consumers have to be supplied with a version of the document through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it exceeds the requirements of their lending institution.
Fact: A home buyer should definitely look through their appraisal; there might be some questions or some concerns about the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, as it contains a great deal 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 cost of a property during a sales transaction involving a lending company.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series 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: There's no need to get an appraisal if you get a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. A home inspector analyzes the condition of the home and its major components and reports these findings.