Appraisal myths debunked
Legally, a real estate appraiser must be state certified to perform substantiated appraisal reports for federally-related sales. The law gives you the right to receive a copy of your completed appraisal from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value should always be the same as to market value.
Fact: It is possible that South Carolina, like most states, supports the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby properties are excellent examples of why this occurs.
Myth: The appraised value of a property will change depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The appraised value of the house does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the opinion of value of the property. Obviously, he will complete his business with impartiality and independence regardless for whom the appraisal is produced.
Myth: Market value will approximate replacement cost.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a particular home, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Certain methods, such as the price per square foot, are what appraisers use to come to the price of a property.
Fact: There are many numerous calculations that an appraiser will use to make a detailed investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to specific facilities and the worth of recently sold comparable properties.
Myth: When the economy is on the rise and the sales prices of houses are found to be rising by a certain percentage, the other homes in the neighborhood can be expected to appreciate based on that same percentage.
Fact: All appreciation of value is on a one-on-one basis, concluded by information on relevant elements and the data of comparable homes. It makes no difference if the economy is good or terrible.
Have other questions about appraisers, appraising or real estate in Lexington County or West Columbia, SC?Contact A. M. Appraisals
Myth: You can generally see what a home is worth simply by looking at the exterior.
Fact: Property value is concluded by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just viewing the house from the outside.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance real estate, they legally own their appraisal.
Fact: Legally, the appraisal is owned by the lender unless the lender relinquishes their interest in the appraisal. Home buyers must be supplied with a copy of the report through request as per the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the needs of their lender.
Fact: A consumer should definitely look through their document; there could be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an exorbitant amount of data - 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the worth of a home during a sales transaction involving a lending institution.
Fact: Depending upon their qualifications and designations, appraisers can and do perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal report. The appraiser finds an opinion of value in the appraisal process and resulting appraisal report. A home inspector determines the condition of the building and its main components and reports these findings.
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