Appraisal myths & facts
By law, an appraiser must be state-licensed to offer appraisals for federally-related transactions. The law gives you the right to receive a copy of your completed appraisal from your lender after it has been provided. Contact us if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser should be equivalent to the market value.
Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an prolonged period.
Myth: The opinion of value of a house will vary depending upon whether the appraisal is provided for the buyer or the seller.
Fact: The opinion of value of the house does not affect the salary of the appraiser; due to this, the appraiser has no pressured interest in the worth of the property. Obviously, he will complete his services with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Fact: Without any pressure from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the home were rebuilt, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to conclude the worth of a property.
Fact: Appraisers make an exhaustive analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a robust economy - when the costs of properties in a given county are found to be rising by a particular percentage - the costs of individual properties in the proximity can be expected to rise by that same percentage.
Fact: All increase of worth is on an individual basis, concluded by data on relevant considerations 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 Lexington County or West Columbia, SC?Contact our professional staff
Myth: Just seeing what the property looks like on the outside gives an idea of its cost.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must inspect the property on a variety of factors based on area, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the data necessary.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their home, they legally own their appraisal report.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal. However, consumers must be given a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the report so long as it meets the necessities of their lender.
Fact: A home buyer should definitely inspect their document; there may be some questions or some worries with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, filled with helpful and often-revealing 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 proximity.
Myth: The only reason someone would order an appraisal is if a home needs its worth estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of necessities 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: An appraisal does not fulfill the same purpose as an inspection report. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the house and its major components and reports their findings.
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