Appraisal myths debunked
Legally, an appraiser has to be state certified to write substantiated real estate appraisals for federally-supported transactions. The law entitles you to receive a copy of your finished report from your lender after it has been produced. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Assessed value will always be similar to to market value.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby properties are prime examples of why there might be a differential in price.
Myth: The buyer or the seller can have impact in the value of the home 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 appraisal, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is written.
Myth: The replacement cost of the home will be is on par with the market value.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. Replacement value is the dollar amount necessary to rebuild a house in-kind.
Myth: There are certain methods that real estate appraisers use to show the cost of a property, such as the price per square foot.
Fact: There are many differing processes that an appraiser will use to make a comprehensive analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable houses.
Myth: When the economy is doing well and the value of homes are found to be rising by a certain percentage, the other homes in the area can be expected to appreciate based on that same percentage.
Fact: Any worth at which an appraiser concludes concerning a certain property is always individualized, based on certain factors pulled from the information of comparable homes and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Denton County or Denton, TX?Contact LHC Appraisals
Myth: You can often find what a home is worth simply by looking at the outside.
Fact: There are a number of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data required.
Myth: Since you're the one paying for the appraisal when applying for your loan to purchase or refinance your home, you own the ordered appraisal report.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with it by their lending company.
Myth: There's no point for consumers to even concern themselves with what the report contains so long as their lending institution is satisfied.
Fact: A consumer should definitely inspect their report; there may be some questions or some worries with the accuracy of the appraisal 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 valuable record for future reference, comprised of useful and often-revealing information - including, but 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 area.
Myth: Appraisers are hired only to assess real estate property values in property sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of requirements 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: A house inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. The point of a home inspector is to assess the condition of the house and its major components, then produce a report on these conclusions.
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