Appraisal myths debunked
Legally, a real estate appraiser has to be state certified to perform legitimate appraisal reports for federally-supported purchase. The law gives you the right to acquire a copy of your completed report from your lender after it has been produced. Contact Ralph Real Estate Appraisal, Inc. if you have any concerns about the appraisal procedure.
Myth: Market value must be similar to the assessed value of the property.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Cordova have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller sometimes may have leverage in the cost of the property depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: Any time market value is found, it should be similar to the replacement cost of the home.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a house without being under pressure from any external party to purchase or sell. The dollar amount required to rebuild a home is what shows the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the cost of a house.
Fact: Appraisers make a detailed analysis of all factors in consideration to the cost of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.
Myth: When the economy is strong and the cost of homes are reported to be increasing by a certain percentage, the other homes in the vicinity can be expected to increase based on that same percentage.
Fact: All appreciation of value is on a case-by-case basis, concluded by information on relevant conditions and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Shelby County or Cordova, TN?Contact our professional staff
Myth: The home's exterior is determinate of the actual value of the home; there is no need to do an interior appraisal.
Fact: There are a number of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these things can be derived simply by viewing the house from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they own their appraisal.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. Home buyers have to be supplied with a copy of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the requirements of their lending company.
Fact: A consumer should definitely inspect their appraisal; there could be some questions or some worries with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal that can 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 proximity.
Myth: The only reason someone would hire an appraiser is if a house needs its cost assessed in a lender sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a variety 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 report is the same as a home inspection report.
Fact: A home inspection serves a completely different purpose than an appraisal. The task of the appraiser is to form an opinion of value in the appraisal process and through writing the report. House inspectors will compose a report that will show the condition of the home and its major components and possible damage.