Appraisal myths & facts
Legally, a real estate appraiser needs to be state certified to produce legitimate appraisal reports for federally-backed purchase. The law entitles you to get a copy of your finished report from your lender after it has been provided. Contact LHC Appraisals if you have any concerns about the appraisal process.
Myth: Market value needs to be equivocal to the assessed value of the property.
Fact: While most states support the suggestion that assessed value is the same as estimated market value, this usually is not the case. Often when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the Denton have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller will have some pull in the cost of the property depending upon for whom the appraiser is working.
Fact: The price of the property does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the house. Obviously, he will provide business with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is found, it should be similar to the replacement cost of the house.
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 influence from any outside group to purchase or sell. The dollar amount needed to reconstruct a house is what forms the replacement cost.
Myth: There are specific methods that real estate appraisers use to find the value of a house, like the price per square foot.
Fact: Appraisers complete an exhaustive analysis of all factors pertaining to the price of a house, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: As houses appreciate by a certain percentage - in a strong economy - the homes in proximity are figured to increase by the same amount.
Fact: Worth appreciation of a certain house must be concluded on an individualized basis, factoring in data on comparable homes and other relevant elements. It makes no difference whether the economy is excellent or terrible.
Have other questions about appraisers, appraising or real estate in Denton County or Denton, TX?Contact our professional staff
Myth: The property's outside is determinate of the actual price of the home; there is no need to do an interior appraisal.
Fact: There are a multitude of different factors that determine the value of a home; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the data necessary.
Myth: Since the consumer is the person who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers must be given a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even care about what the appraisal contains so long as their lender is fine with the contents therein.
Fact: It is a very good idea for consumers to go through a copy of their appraisal report so that they can verify the accuracy of the report, 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 report can serve as a record for the future, containing an exorbitant 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the cost of a property during a sales transaction involving a lending institution.
Fact: Based upon their qualifications and designations, appraisers can and may perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't need to get an appraisal if you have had a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. The task of the appraiser is to find an opinion of value in the appraisal process and through creating the report. A home inspector analyzes the condition of the property and its major components and reports these findings.
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