Appraisal myths & factsBy law, an appraiser is enforced to be state-licensed to perform appraisals for federally-related purchases. You also have the right to demand a copy of the finished report from your lending agency. Contact McCarthy Real Estate, Inc., Appraisal Services if you have any concerns about the appraisal procedure. Myth: Assessed value should always be equal to market value.Fact: While most states back the concept that assessed value equates estimated market value, this generally is not the case. Usually when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Marietta have not been reassessed for quite a while, it may vary wildly. Myth: The buyer or the seller will have leverage in the value of the home depending upon for whom the appraiser is working.Fact: The value of the property does not affect the pay of the appraiser; due to this, the appraiser has no personal interest in the cost of the house. Obviously, he will complete his job with impartiality and objectivity regardless for whom the appraisal is produced. ![]() Myth: Any time market value is established, it should be similar to the replacement cost of the home.Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under duress to buy or sell. If the house were reconstructed, the dollar amount required to do so would make up the replacement cost. Myth: There are specific methods that appraisers use to determine the cost of a house, like the price per square foot.Fact: An appraisal report is an amalgamation of information concluded from the property's size, location, proximity to some facilities, the condition of the house and the worth of recent comparable sales. You can depend on McCarthy Real Estate, Inc., Appraisal Services's staff to be professional in assessing this data. Myth: When the economy is doing well and the cost of homes are found to be rising by a certain percentage, the other properties in the vicinity can be expected to appreciate based on that same percentage.Fact: All increase of worth is on a case-by-case basis, concluded by data on relevant conditions and the data of comparable homes. 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 our professional staffMyth: The home's outside is determinate of the actual worth of the property; there is no need to do an interior appraisal.Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the information required. Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their property, they legally own their appraisal.Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal. Consumers must be provided with a version of the document upon written request as per the Equal Credit Opportunity Act. Myth: It doesn't mean anything to consumers what's in the appraisal so long as it meets the requirements of their lending agency.Fact: A consumer should definitely read through their appraisal report; there could be some questions or some concerns with the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, filled with helpful and often-revealing information - including 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 vicinity. ![]() Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a property during a sales transaction involving a lending institution.Fact: Appraisers can have many different qualifications and designations which allow them to perform a lot 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: An appraisal report is no different than a home inspection.Fact: An appraisal does not fulfill the same purpose as an inspection. The function of an appraisal report is to form an opinion of fair market value during the appraisal process and the production of the report. The point of a home inspector is to approximate the condition of the property and its major components, then provide a report on their conclusions. |