Appraisal myths debunked
It is enforced by the government that a real estate appraiser needs to be state-licensed to create appraisals for federally-supported home transactions in Texas. The law entitles you to receive a copy of your completed appraisal from your lender after it has been produced. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Assessed value should be equal to market value.
Fact: It is possible that Texas, like most states, supports the idea that the assessed value is no different from the market value; however, this is not always true. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Pflugerville have not been reassessed for a good length of time, it may vary wildly.
Myth: The opinion of value of a house will change depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no vested interest in the result of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is found, it should equate to the replacement cost of the home.
Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. Replacement value is the dollar amount needed to reconstruct a home in-kind.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the cost of a house.
Fact: There are many different calculations that an appraiser will use to make a comprehensive investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to certain facilities and the opinion of value of recently sold comparable properties.
Myth: As homes increase their worth by a certain percentage - in a robust economic state - the houses in proximity are figured to appreciate by the same amount.
Fact: All appreciation of worth is on an individual basis, determined by information on relevant considerations and the data of comparable properties. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Travis County or Pflugerville, TX?Contact us
Myth: The home's exterior is determinate of the actual price of the property; it is unnecessary to do an interior appraisal.
Fact: Property value is concluded by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply examining the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the document. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be provided with it by their lending agency.
Myth: Consumers need not care about what is in their appraisal report so long as it meets the needs of their lending agency.
Fact: A consumer should definitely read through their appraisal; there will probably be some questions or some concerns about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a near perfect record for future reference, comprised of 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending company.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a lot 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: There's no reason to get an appraisal if you have had a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the building and its major components and reports their findings.