Common myths about appraising

It is required by the government that a real estate appraiser is required to be state-licensed to offer appraisal reports for federally-related real estate transactions in South Carolina. Also by law, you are entitled to demand a copy of the finished appraisal from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.

Myth: Market value must be equivocal to the assessed value of the property.

Fact: It is probable that South Carolina, like most states, supports the common myth that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the area have not been reassessed for an prolonged period.

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

Fact: The cost of the house does not affect the payment of the appraiser; as such, the appraiser has no personal interest in the value of the home. This means that he will provide task with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: The replacement value of the property is always is on par with the market value.

Fact: The way market value is derived is based on what a home buyer would likely pay a willing seller for a house without being under influence from any external party to buy or sell. The replacement cost is the dollar amount needed to rebuild a house in-kind.

Myth: There are specific methods that real estate appraisers use to determine the opinion of value of a home, like the price per square foot.

Fact: Appraisers complete a comprehensive analysis of all factors pertaining 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 doing well and the sales prices of homes are found to be appreciating by a certain percentage, the other houses in the vicinity can be expected to rise based on that same percentage.

Fact: Worth appreciation of a specific home is always concluded on a case-by-case basis, factoring in information on comparable houses and other relevant specifications within the house itself. It makes no difference if the economy is strong or bad.

Myth: The home's exterior is determinate of the actual value of the property; it is unnecessary to do an interior inspection.

Fact: Home worth is determined by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just looking at the house from the exterior.

Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their house, they own their appraisal report.

Fact: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal. However, home buyers have to be given a copy of the document upon written request, under the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their appraisal report so long as it exceeds the requirements of their lending group.

Fact: A home buyer should definitely inspect their appraisal report; there might be some questions or some concerns with the accuracy of the analysis that must 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, containing useful and often-revealing data - 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 proximity.