Appraisal myths & facts
It is mandated by law that a real estate appraiser is required to be state-licensed to offer appraisals for federally-supported property transactions in Ohio. The law entitles you to get a copy of your completed appraisal report from your lending agency after it has been provided. Contact our professional staff if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser should be exactly the same as the market value.
Fact: While most states support the concept that assessed value approximates estimated market value, this commonly is not the case. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby houses are perfect examples of why the price can vary.
Myth: The appraised value of a home will differ depending upon if the appraisal is ordered for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the result of the report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is ordered.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Fact: The way market value is derived is based on what a buyer would likely pay a willing seller for a home without being under duress from any outside party to buy or sell. If the house were reconstructed, the dollar amount necessary to do so would set the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to conclude the cost of a home.
Fact: Appraisers make a detailed analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable houses.
Myth: When the economy is doing well and the cost of houses are found to be appreciating by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.
Fact: Value appreciation of a specific house is always determined on a case-by-case basis, factoring in information on comparable houses and other relevant considerations. It makes no difference whether the economy is powerful or on the decline.
Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?Contact our professional staff
Myth: Just examining what the home looks like on the outside gives an idea of its worth.
Fact: To determine an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found just by viewing the house from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their home, they own their appraisal report.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be supplied with a version of the report through request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the necessities of their lending company.
Fact: It is very important for consumers to look at 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 report can double as a record for the future, containing an exorbitant 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending company.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude 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 get a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. The task of a home inspector is to assess the condition of the house and its main components, then provide a report on these findings.