Appraisal myths debunked
By law, an appraiser is required to be state-licensed to offer appraisals for federally-supported sales. The law entitles you to get a copy of your completed appraisal from your lending agency after it has been produced. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser is required to be exactly the same as the market value.
Fact: While most states back the suggestion that assessed value is the same as estimated market value, this generally is not the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The appraised value of a house will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The price of the house does not affect the salary of the appraiser; due to this, the appraiser has no preconceived interest in the value of the property. This means that he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the house.
Fact: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. If the property were rebuilt, the dollar amount needed to do so would form the replacement cost.
Myth: Specific formulae, such as the price per square foot, are the methods appraisers use to come to the price of a house.
Fact: Appraisers complete a detailed analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: When the economy is on the rise and the cost of properties are reported to be rising by a certain percentage, the other homes in the vicinity can be expected to appreciate based on that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a particular property is always individualized, based on certain factors derived from the data of comparable properties and other specifications within the property itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Travis County or Pflugerville, TX?Contact Russell Appraisal Service
Myth: The house's outside is determinate of the actual worth of the home; it is unnecessary to do an interior inspection.
Fact: There are a number of different variables that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data necessary.
Myth: Since you're the one paying for the appraisal when applying for the loan to buy or refinance your home, you own the provided appraisal.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. Because of the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be provided with it by their lending company.
Myth: There's no reason for consumers to even care about what the report contains so long as their lender is satisfied.
Fact: It is very important for consumers to go through a copy of their appraisal so that they can verify the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an incredible amount of information - including, but certainly not limited to 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: Appraisers are hired only to assess house values in home sales involving mortgage-lending transactions.
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: You don't have 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 point of an appraisal is to form an opinion of fair market value during the appraisal process and the production of the appraisal report. The job of a home inspector is to find the condition of the property and its main components, then provide a report on these inspection.