Appraisal myths & facts
Legally, an appraiser must be state certified to create legitimate appraisal reports for federally-related transactions. Also by law, you are allowed to request a copy of the completed appraisal report from your lender. Contact LHC Appraisals if you have any questions about the appraisal process.
Myth: Market value has to be equivocal to the assessed value of the property.
Fact: While most states uphold the concept that assessed value is the same as estimated market value, this often is not the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby properties are perfect examples of why the price can vary.
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: The cost of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the value of the home. This means that he will render job with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement cost of the home should be is on par with the market value.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific house, with neither being under pressure to buy or sell. If the home were reconstructed, the dollar amount necessary to do so would be the replacement cost.
Myth: There are specific methods that appraisers use to show the opinion of value of a home, such as the price per square foot.
Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to some facilities, the condition of the home and the cost of recent comparable sales. You can depend on LHC Appraisals's appraisers to be forthright in assessing this information.
Myth: When the economy is strong and the value of properties are found to be appreciating by a certain percentage, the other homes in the vicinity can be expected to increase based on that same percentage.
Fact: Cost appreciation of a certain property has to be concluded on an individualized basis, factoring in data on comparable properties and other relevant considerations. It makes no difference whether the economy is excellent or on the decline.
Have other questions about appraisers, appraising or real estate in Denton County or Denton, TX?Contact LHC Appraisals
Myth: The home's outside is determinate of the actual worth of the property; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different factors that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply examining the home from the outside.
Myth: Since you're the one paying for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the report. Home buyers must be provided with a version of the report through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their appraisal report so long as it meets the needs of their lending agency.
Fact: Only if consumers check out a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing an incredible amount of data - 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the cost of a property during a sales transaction involving a lending agency.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection report.
Fact: An appraisal report does not fulfill the same purpose as an inspection 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 main components and reports their findings.
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