Appraisal myths & facts
Legally, a real estate appraiser is required to be state certified to perform legitimate real estate appraisals for federally-related transactions. Also by law, you are entitled to receive a copy of the finished report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value must be the same as the assessed value of the property.
Fact: It is probable that Ohio, like most states, validates the idea that the assessed value equates to the market value; however, this is not always true. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the area have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on if the appraisal is done for the buyer or the seller, the opinion of value of the home will vary.
Fact: The value of the property does not affect the payment of the appraiser; as a result, the appraiser has no preconceived interest in the value of the house. Obviously, he will conduct services with impartiality and independence regardless for whom the appraisal is created.
Myth: Market value will be the same as replacement cost.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a certain house, with neither being under duress to buy or sell. Replacement value is the dollar amount necessary to reconstruct a property in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the worth of a home.
Fact: There are many different ways that an appraiser will use to make a detailed analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the value of recently sold comparable properties.
Myth: In a powerful economy - when the costs of properties in a given county are reported to be rising by a certain percentage - the prices of individual homes in the area can be expected to rise by that same percentage.
Fact: Any worth at which an appraiser concludes concerning a specific home is always individualized, based on certain factors pulled from the information of comparable properties and other considerations within the house itself. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Washington County or Marietta, OH?Contact our professional staff
Myth: The home's outside is determinate of the actual worth of the house; it is unnecessary to do an interior appraisal.
Fact: To conclude an accurate value beyond all doubt, an appraiser must examine the house on a variety of factors based on area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply inspecting the home from the exterior.
Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance real estate, you own the produced appraisal report.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that purchased the appraisal. However, home buyers have to be given a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the needs of their lending company.
Fact: A consumer should definitely read through their appraisal; there may be some questions or some worries with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an report that can be useful to the consumer 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 region.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a house during a sales transaction involving a lending agency.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection.
Fact: Appraisal reports are nothing like a home inspection report. The task of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. A home inspector assesses the condition of the building and its main components and reports their findings.