Common myths about appraising
By law, an appraiser is required to be state-licensed to produce appraisals for federally-related sales. Also by law, you have the right to demand a copy of the finished appraisal report from your lender. Contact A. M. Appraisals if you have any concerns about the appraisal procedure.
Myth: Market value needs to be equivocal to the assessed value of the property.
Fact: It is possible that South Carolina, like most states, supports the idea that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby properties are prime examples of why there might be a differential in price.
Myth: The value of a house will vary depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The value of the home does not affect the pay of the appraiser; because of this, the appraiser has no vested interest in the value of the house. This means that he will complete his services with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is established, it should equal the replacement cost of the house.
Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any external party to purchase or sell. The dollar amount demanded to rebuild a property is what forms the replacement cost.
Myth: There are certain ways that real estate appraisers use to find the cost of a house, such as the price per square foot.
Fact: An appraisal report is an assertion of information concluded from the property's size, location, proximity to specific facilities, the condition of the property and the cost of recent comparable sales. You can depend on A. M. Appraisals's staff to be ethical in assessing this data.
Myth: As properties appreciate by a specific percentage - in a robust economy - the homes around the appreciating properties are expected to appreciate by the same amount.
Fact: Worth appreciation of a certain house is always concluded on a case-by-case basis, factoring in data on comparable houses and other relevant considerations. 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 A. M. Appraisals
Myth: Just examining what the house looks like on its exterior gives an idea of its cost.
Fact: Home value is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just looking at the house from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Consumers must be provided with a version of the document through request due to the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it satisfies the necessities of their lending agency.
Fact: A consumer should definitely read through their report; there may be some questions or some concerns about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a near perfect record for future reference, comprised of helpful and often-revealing information - 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 vicinity.
Myth: Appraisals are ordered only to estimate home values in property sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of needs 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: An appraisal report is no different than a home inspection report.
Fact: An appraisal report does not serve the same purpose as an inspection report. The purpose of an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector determines the condition of the home and its major components and reports these findings.
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