Common myths about appraising
Legally, an appraiser must be state certified to perform substantiated real estate appraisals for federally-supported transactions. The law allows you to acquire a copy of your completed appraisal from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: It is probable that Florida, like most states, supports the suggestion that the assessed value is no different from the market value; however, this is not often the case. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when houses in the vicinity have not been reassessed for an extended period.
Myth: Depending on if the appraisal is written for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value will equal replacement cost.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under undue influence to buy or sell. Replacement value is the dollar amount necessary to reconstruct a home in-kind.
Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the value of a property.
Fact: Appraisers complete a comprehensive analysis of all factors in consideration to the value of a home, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: In a powerful economy - when the costs of houses in a given county are reported to be rising by a particular percentage - the values of individual houses in the proximity can be expected to rise by that same percentage.
Fact: All appreciation of worth is on a case-by-case basis, determined by data on relevant conditions and the data of comparable houses. It makes no difference if the economy is good or bad.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact Appraisal Services of Brandon, Inc .
Myth: The home's exterior is determinate of the actual price of the house; there is no need to do an interior inspection.
Fact: To determine an accurate price beyond all doubt, an appraiser must examine the house 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 examining the home from the exterior.
Myth: Considering that the consumer is the party who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. However, home buyers have to be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal so long as it meets the requirements of their lending agency.
Fact: A home buyer should definitely look through their document; there could be some questions or some worries with the accuracy of the appraisal report 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 contained in an appraisal report that will probably be useful to the home buyer 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 estimate of the price of a house during a sales transaction involving a lending company.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. The reason behind an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the production of the appraisal report. The task of a home inspector is to approximate the condition of the home and its main components, then create a report on these inspection.