Appraisal myths debunked
Legally, a real estate appraiser must be state certified to create legitimate appraisal reports for federally-supported transactions. The law entitles you to receive a copy of your completed appraisal from your lender after it has been produced. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should be equal to market value.
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. Usually when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the area have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller may have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is found, it should equate to the replacement cost of the house.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under duress to buy or sell. If the house were rebuilt, the dollar amount necessary to do so would be the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the opinion of value of a property, like the price per square foot.
Fact: An appraisal report is an amalgamation of data concluded from the home's size, location, proximity to certain facilities, the condition of the home and the price of recent comparable sales. You can count on Appraisal Services of Brandon, Inc .'s staff to be ethical in assessing this information.
Myth: As houses appreciate by a certain percentage - in a robust economic state - the houses nearby are expected to increase by the same amount.
Fact: Any worth at which an appraiser concludes concerning a specific home is always personalized, based on certain factors concluded from the data of comparable homes and other specifications within the property itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact us
Myth: Just seeing what the home looks like on its exterior gives a good idea of its cost.
Fact: To determine an accurate price beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. As you can see, none of these things can be derived just by looking at the house from the exterior.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance real estate, they own their appraisal.
Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the appraisal. However, consumers must be given a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their document so long as it satisfies the needs of their lending group.
Fact: A consumer should definitely inspect their report; 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 report can serve as a record for the future, since it contains a great deal 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 area.
Myth: Appraisers are hired only to estimate home values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a lot 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: An appraisal is the same as a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The function of an appraisal is to find an opinion of fair market value during the appraisal process and the production of the report. The job of a home inspector is to approximate the condition of the house and its major components, then produce a report on their findings.