Common myths about appraising
Legally, a real estate appraiser is required to be state certified to create substantiated real estate appraisals for federally-backed transactions. The law gives you the right to acquire a copy of your finished report from your lending agency after it has been provided. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Market value must be similar to the assessed value of the property.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are exact examples of why this occurs.
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 cost of the house does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the property. This means that he will conduct services with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Any time market value is established, it should be similar to the replacement cost of the house.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a particular property, with neither being under undue influence to buy or sell. The dollar amount needed to rebuild a home is what constitutes the replacement cost.
Myth: There are certain methods that real estate appraisers use to determine the value of a home, like the price per square foot.
Fact: Appraisers make a detailed analysis of all factors in consideration to the worth of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: As properties appreciate by a specific percentage - in a robust economy - the homes in proximity are figured to increase by the same amount.
Fact: Value increase of a certain property must be concluded on a case-by-case basis, factoring in information on comparable houses and other relevant elements. It makes no difference if the economy is excellent or terrible.
Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?Contact McCarthy Real Estate, Inc., Appraisal Services
Myth: Just looking at what the home looks like on its exterior gives a good idea of its worth.
Fact: To find an accurate value beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found simply by inspecting the home from the outside.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your house, you own the provided appraisal report.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be given it by their lender.
Myth: Home buyers need not care about what is in their appraisal so long as it exceeds the needs of their lending institution.
Fact: It is very important for home buyers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required 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, as it contains a great deal of 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending institution.
Fact: Ordering an appraisal can fulfill a variety of requirements 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 house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. House inspectors will create a report that will show the condition of the home and its major components and possible damage.