Appraisal myths & facts
It is mandated by law that a real estate appraiser needs to be state-licensed to perform appraisal reports for federally-related real estate transactions in Florida. You also have the right to request a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will be equal to market value.
Fact: It might be that Florida, like most states, validates the suggestion that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the home will vary.
Fact: The value of the home does not affect the pay of the appraiser; as a result, the appraiser has no preconceived interest in the cost of the home. Obviously, he will render task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under duress to buy or sell. Replacement cost is the dollar amount necessary to rebuild a home in-kind.
Myth: There are specific methods that appraisers use to determine the opinion of value of a home, like the price per square foot.
Fact: An appraisal report is a collection of data based on the property's size, location, proximity to specific facilities, the condition of the house and the cost of recent comparable sales. You can rely on Appraisal Services of Brandon, Inc .'s staff to be professional in assessing this data.
Myth: When the economy is robust and the sales prices of homes are reported to be increasing by a certain percentage, the other houses in the area can be expected to increase based on that same percentage.
Fact: All appreciation of price is on a case-by-case basis, found by information on relevant conditions and the data of comparable houses. 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 our professional staff
Myth: Just seeing what the house looks like on the outside gives an excellent idea of its worth.
Fact: To determine an accurate price beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just viewing the property from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their home, they own their appraisal report.
Fact: The report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given it by their lender.
Myth: Consumers need not be concerned with what is in their document so long as it meets the needs of their lending agency.
Fact: Only if home buyers read a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable record for future reference, filled with useful and often-revealing information - including 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: The only reason someone would order an appraisal is if a property needs its cost assessed in a lender sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and often do provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is the same as a home inspection report.
Fact: An appraisal report does not fulfill the same purpose as an inspection. The function of an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector analyzes the condition of the house and its major components and reports their findings.