Appraisal myths & facts
Legally, an appraiser has to be state certified to produce legitimate real estate appraisals for federally-related purchase. The law gives you the right to get a copy of your completed appraisal report from your lender after it has been provided. Contact us if you have any questions about the appraisal process.
Myth: Market value needs to be the same as the assessed value of the property.
Fact: While most states back the suggestion that assessed value approximates estimated market value, this often is not the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the value of the property will vary.
Fact: There is no real interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is written.
Myth: The replacement value of the home will be is on par with the market value.
Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a certain home, with neither being under pressure to buy or sell. The dollar amount necessary to reconstruct a property is what forms the replacement cost.
Myth: Specific methods, such as the price per square foot, are the methods appraisers use to ascertain the value of a home.
Fact: An appraisal report is an amalgamation of data based on the home's size, location, proximity to specific facilities, the condition of the house and the price of recent comparable sales. You can rely on Amerappraise, LLC's staff to be professional in assessing this information.
Myth: In a robust economy - when the costs of homes in a given area are reported to be increasing by a certain percentage - the prices of individual homes in the area can be expected to rise by that same percentage.
Fact: All appreciation of price is on an individual basis, determined by data on relevant conditions and the data of comparable homes. It makes no difference whether the economy is good or bad.
Have other questions about appraisers, appraising or real estate in New Castle County or Bear, DE?Contact Amerappraise, LLC
Myth: The property's exterior is determinate of the actual value of the house; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the information needed.
Myth: Since the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the document. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be given one by their lender.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the necessities of their lender.
Fact: A home buyer should definitely inspect their document; there will probably be some questions or some worries with the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since it contains an exorbitant 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 area.
Myth: Appraisers are hired only to estimate home values in property sales involving mortgage-lending deals.
Fact: Based upon their qualifications and designations, appraisers can and may provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report. House inspectors will write a report that will determine the condition of the home and its major components and possible damage.