Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-supported transactions. You are also entitled by law to demand a copy of the completed appraisal from your lender. Contact A. M. Appraisals if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.
Fact: It could be that South Carolina, like most states, validates the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby houses are perfect examples of why the price can vary.
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 house does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the cost of the house. This means that he will render business with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement value of the house will be is on par with the market value.
Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific home. Replacement value is the dollar amount necessary to reconstruct a home in-kind.
Myth: There are specific methods that real estate appraisers use to show the value of a property, like the price per square foot.
Fact: There are many numerous methods that an appraiser will use to make a detailed investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable homes.
Myth: As homes appreciate by a certain percentage - in a robust economic state - the properties nearby are figured to increase by the same amount.
Fact: Any worth at which an appraiser concludes in regards to a particular home is always individualized, based on certain factors pulled from the information of comparable properties and other considerations within the house itself. It makes no difference if the economy is excellent or poor.
Have other questions about appraisers, appraising or real estate in Lexington County or West Columbia, SC?Contact our professional staff
Myth: The property's outside is determinate of the actual price of the property; it is unnecessary to do an interior inspection.
Fact: There are a multitude of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just viewing the home from the outside.
Myth: Since the consumer is the one who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. By the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be given it by their lender.
Myth: There's no reason for home buyers to even care about what the report contains so long as their lending agency is satisfied.
Fact: A home buyer should definitely read through their document; there might be some questions or some concerns with the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, as it contains an incredible amount of information - 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: Appraisers are hired only to estimate home values in property sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The purpose of the appraiser is to form an opinion of value in the appraisal process and through producing the report. House inspectors will create a report that will determine the condition of the house and its major components and possible damage.
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