Common myths about appraising
Legally, an appraiser is required to be state certified to produce legitimate appraisal reports for federally-backed purchase. The law entitles you to receive a copy of your finished report from your lending agency after it has been produced. Contact Appraisal Services of Brandon, Inc . if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.
Fact: While most states support the concept that assessed value is equal to estimated market value, this commonly is not the case. At times when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller will have some pull in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value will be the same as replacement cost.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific property, with neither being under duress to buy or sell. The dollar amount needed to reconstruct a home is what shows the replacement cost.
Myth: Certain formulae, like the price per square foot, are what appraisers use to ascertain the worth of a home.
Fact: An appraisal report is an amalgamation of data based on the home's size, location, proximity to certain facilities, the condition of the property and the cost of recent comparable sales. You can rely on Appraisal Services of Brandon, Inc .'s staff to be forthright in assessing this data.
Myth: When the economy is strong and the cost of properties are found to be appreciating by a certain percentage, the other homes in the vicinity can be expected to appreciate based on that same percentage.
Fact: Any price at which an appraiser concludes concerning a certain property is always personalized, based on certain factors concluded from the data of comparable homes and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.
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Myth: Just examining what the home looks like on the outside gives an excellent idea of its worth.
Fact: To find an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by inspecting the property from the outside.
Myth: Since the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. However, consumers must be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even concern themselves with what the appraisal report contains so long as their lending institution is satisfied.
Fact: A consumer should definitely read through their appraisal report; there could be some questions or some concerns about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data stored in an report that could 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the worth of a property during a sales transaction involving a lending institution.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide 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: An appraisal is no different than a home inspection.
Fact: Appraisal reports are nothing like a home inspection. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. The point of a home inspector is to assess the condition of the home and its main components, then create a report on these conclusions.