Appraisal myths debunked
By law, an appraiser must be state-licensed to perform appraisals for federally-supported purchases. The law gives you the right to receive a copy of your completed appraisal from your lending agency after it has been produced. Contact McCarthy Real Estate, Inc., Appraisal Services if you have any concerns about the appraisal process.
Myth: Assessed value should always equate to market value.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an prolonged time.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the cost of the property will vary.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is created.
Myth: The replacement cost of the home should be is on par with the market value.
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 house. Replacement value is the dollar amount required to rebuild a house in-kind.
Myth: There are specific ways that real estate appraisers use to show the value of a house, such as the price per square foot.
Fact: An appraisal report is a collection of information concluded from the house's size, location, proximity to some facilities, the condition of the home and the value of recent comparable sales. You can rely on McCarthy Real Estate, Inc., Appraisal Services's staff to be forthright in assessing this information.
Myth: In a powerful economy - when the values of properties in a given county are found to be rising by a certain percentage - the worth of individual properties in the vicinity can be expected to rise by that same percentage.
Fact: Cost appreciation of a certain home is always concluded on an individualized basis, factoring in information on comparable houses and other relevant elements. It makes no difference whether the economy is good or bad.
Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?Contact our professional staff
Myth: You can often tell what a home is worth simply by looking at the outside.
Fact: To conclude an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found simply by looking at the property from the exterior.
Myth: Since you're the one paying for the appraisal when applying for your loan to purchase or refinance real estate, you own the produced appraisal.
Fact: Legally, the report is owned by the lending company unless the lender relinquishes their interest in the document. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be given one by their lending agency.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the requirements of their lending company.
Fact: It is very important for home buyers to peruse a copy of their report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an appraisal report that will probably be useful to the home buyer in the future, such as 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 assessment of the value of a house during a sales transaction involving a lending institution.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection report. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. The task of a home inspector is to determine the condition of the home and its major components, then write a report on these findings.