Appraisal myths debunked
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-related sales. You have the ability to acquire a copy of the completed appraisal from your lending agency. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Market value needs to be equivocal to the assessed value of the property.
Fact: While most states back the idea that assessed value is the same as estimated market value, this usually is not the case. Often 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 quite a while, it may vary wildly.
Myth: The value of a property will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value will equate to replacement cost.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a specific home, with neither being under duress to buy or sell. Replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Certain formulae, such as the price per square foot of the property, are the methods appraisers use to ascertain the value of a home.
Fact: An appraisal is an amalgamation of data concluded from the home's size, location, proximity to some facilities, the condition of the house and the price of recent comparable sales. You can count on Amerappraise, LLC's appraisers to be forthright in assessing this data.
Myth: When the economy is doing well and the cost of properties are reported to be appreciating by a certain percentage, the other homes in the proximity can be expected to rise based on that same percentage.
Fact: Any worth at which an appraiser concludes concerning a certain home is always individualized, based on certain factors concluded from the data of comparable homes and other specifications within the property itself. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in New Castle County or Bear, DE?Contact Amerappraise, LLC
Myth: Just examining what the house looks like on its exterior gives a good idea of its cost.
Fact: Home value is concluded by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the property from the outside.
Myth: Since you're the one paying for the appraisal when applying for your loan to buy or refinance real estate, you own the produced appraisal.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers have to be given a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it meets the needs of their lending company.
Fact: A home buyer should definitely look through their appraisal report; there will probably be some questions or some worries with the accuracy of the appraisal that should 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, since it contains an incredible amount of data - including, but certainly 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: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending institution.
Fact: Depending upon their qualifications and designations, appraisers can and will provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection report. The job of the appraiser is to come to an opinion of value in the appraisal process and through writing the report. The point of a home inspector is to approximate the condition of the house and its main components, then create a report on these inspection.