Appraisal myths & facts

Legally, an appraiser has to be state certified to perform legitimate real estate appraisals for federally-supported transactions. Also by law, you are allowed to demand a copy of the finished report from your lender. Contact us if you have any concerns about the appraisal process.

Myth: Assessed value generally will equate to market value.

Fact: It is possible that Ohio, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not always true. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby properties are prime examples of why this occurs.

Myth: Depending on whether the appraisal is produced for the buyer or the seller, the value of the property will vary.

Fact: The cost of the property does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the cost of the home. What this means is he will provide task with impartiality and independence regardless for whom the appraisal is conducted.

Myth: Market value should equal replacement cost.

Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. Replacement value is the dollar amount necessary to reconstruct a property in-kind.

Myth: There are specific ways that real estate appraisers use to find the opinion of value of a property, such as the price per square foot.

Fact: Appraisers make a detailed analysis of all factors pertaining to the worth of a home, including its location, condition, size, proximity to facilities and recent costs of comparable homes.

Myth: In a robust economy - when the sales prices of homes in a given county are reported to be appreciating by a particular percentage - the worth of individual properties in the proximity can be expected to increase by that same percentage.

Fact: All appreciation of price is on a one-on-one basis, found by data on relevant considerations and the data of comparable homes. It doesn't matter if the economy is doing well or declining.

Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?

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Myth: The home's outside is determinate of the actual price of the home; there is no need to do an interior appraisal.

Fact: To conclude an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection obviously can't provide all of the data required.

Myth: Since the consumer is the person who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.

Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the report. However, home buyers have to be provided with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.

Myth: Home buyers need not be concerned with what is in their appraisal document so long as it exceeds the requirements of their lending agency.

Fact: A consumer should definitely read through their appraisal 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 makes an invaluable record for future reference, filled with helpful and often-revealing data - 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: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a house during a sales transaction involving a lending institution.

Fact: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: A home inspection serves the same purpose as an appraisal.

Fact: Appraisal reports have almost nothing in common with a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting document. House inspectors will create a report that will show the condition of the property and its major components and possible damage.