Common myths about appraising
Legally, a real estate appraiser needs to be state certified to produce substantiated real estate appraisals for federally-backed transactions. Also by law, you have the ability to request a copy of the completed appraisal from your lending agency. Contact McCarthy Real Estate, Inc., Appraisal Services if you have any concerns about the appraisal procedure.
Myth: Market value should be the same as the assessed value of the property.
Fact: While most states back the concept that assessed value approximates estimated market value, this generally is not the case. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The value of a house will vary depending upon if the appraisal is ordered for the buyer or the seller.
Fact: The appraised value of the house does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the worth of the home. This means that he will complete his task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equal the replacement cost of the property.
Fact: Without any pressure from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular home. The dollar amount demanded to rebuild a home is what forms the replacement cost.
Myth: Specific formulae, like the price per square foot, are what appraisers use to ascertain the value of a house.
Fact: Appraisers make a full analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: When the economy is robust and the cost of homes are reported to be increasing by a certain percentage, the other properties in the proximity can be expected to rise based on that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, concluded by information on relevant conditions and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?Contact McCarthy Real Estate, Inc., Appraisal Services
Myth: You can often see what a house is worth simply by looking at the outside.
Fact: There are a multitude of different factors that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these things can be derived just by viewing the house from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal.
Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the report. Home buyers must be given a version of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.
Fact: It is a very good idea for home buyers to check over a copy of their report so that they can verify the accuracy of the report, in case it's required to question its veracity. 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, containing an incredible 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 area.
Myth: Appraisers are hired only to assess building 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 provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't need to get an appraisal if you get a home inspection.
Fact: Appraisal reports are completely different than a home inspection report. The purpose of an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will produce a report that will determine the condition of the property and its major components and possible damage.