Common myths about appraising
Legally, a real estate appraiser has to be state certified to create legitimate real estate appraisals for federally-supported sales. You have the ability to demand a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will be equal to market value.
Fact: It is possible that Florida, like most states, supports the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Usually when interior remodeling has been done and the assessor is unaware 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 value of a house will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no vested interest in the outcome of the report and should complete services 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 home.
Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. If the house were reconstructed, the dollar amount required to do so would be the replacement cost.
Myth: There are certain ways that real estate appraisers use to determine the cost of a home, such as the price per square foot.
Fact: Appraisers make a comprehensive analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent costs of comparable houses.
Myth: When the economy is strong and the value of homes are found to be increasing by a certain percentage, the other homes in the proximity can be expected to appreciate based on that same percentage.
Fact: All increase of price is on an individual basis, determined by information on relevant elements and the data of comparable homes. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact our professional staff
Myth: Just looking at what the property looks like on its exterior gives an idea of its cost.
Fact: There are a number of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the data needed.
Myth: Considering that the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. Consumers have to be given a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal report so long as it meets the needs of their lending agency.
Fact: Only if home buyers read a copy of their appraisal report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal that should 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 area.
Myth: Appraisers are hired only to assess real estate property values in home sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal report. The purpose of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the production of the report. A home inspector analyzes the condition of the building and its major components and reports these findings.