Common myths about appraising
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-related sales. The law gives you the right to receive a copy of your finished appraisal report from your lending agency after it has been provided. Contact Amerappraise, LLC if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Fact: It is possible that Delaware, like most states, supports the idea that the assessed value is the same as the market value; however, this is not often the case. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby houses are excellent examples of why there might be a differential in price.
Myth: The opinion of value of a property will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Any time market value is found, it should be the same as the replacement cost of the home.
Fact: Market value is arrived at through 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 needed to rebuild a house is what constitutes the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to come to the worth of a house.
Fact: An appraisal report is an amalgamation of data based on the home's size, location, proximity to undesirable facilities, the condition of the home and the cost of recent comparable sales. You can depend on Amerappraise, LLC's staff to be ethical in assessing this information.
Myth: In a powerful economy - when the prices of houses in a given area are reported to be appreciating by a particular percentage - the prices of individual houses in the proximity can be expected to appreciate by that same percentage.
Fact: All increase of value is on a case-by-case basis, determined by information on relevant elements and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
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Myth: The home's exterior is determinate of the actual value of the property; it is unnecessary to do an interior inspection.
Fact: There are a number of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the data necessary.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to buy or refinance your house, you own the ordered appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers have to be given a copy of the report upon written request, due to the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal report contains so long as their lending institution is satisfied.
Fact: Only if consumers examine a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, as it contains a great deal of data - 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 vicinity.
Myth: Appraisals are ordered only to assess house values in house sales involving mortgage-lending transactions.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: There's no reason to get an appraisal if you order a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting report. House inspectors will compose a report that will express the condition of the house and its major components and possible damage.