Appraisal myths debunked
By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-backed transactions. You are also entitled by law to demand a copy of the finished appraisal from your lender. Contact A. M. Appraisals if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser is required to be equivalent to the market value.
Fact: It is possible that South Carolina, like most states, validates the common myth that the assessed value equates to the market value; however, this is not always true. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the West Columbia have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the opinion of value of the house will vary.
Fact: The appraiser has no vested interest in the result of the appraisal report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should be the same as replacement cost.
Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. The dollar amount required to rebuild a house is what constitutes the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the worth of a property.
Fact: Appraisers make a full analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: As homes increase their worth by a specific percentage - in a strong economy - the properties within the same neighborhood are figured to appreciate by the same amount.
Fact: All increase of worth is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Lexington County or West Columbia, SC?Contact our professional staff
Myth: You can commonly tell what a house is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just viewing the property from the exterior.
Myth: Since the consumer is the one who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Legally, the report is owned by the lending company unless the lender relinquishes their interest in the report. However, consumers have to be given a copy of the appraisal upon written request, due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal report so long as it meets the needs of their lending group.
Fact: A consumer should definitely read through their report; there will probably be some questions or some worries 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. There is an incredible amount of information contained in an appraisal that should 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending institution.
Fact: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you order a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. A home inspector assesses the condition of the building and its major components and reports their findings.
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