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Appraisal myths debunked

By law, an appraiser needs to be state-licensed to offer appraisals for federally-related purchases. You are also entitled by law to demand a copy of the completed appraisal report from your lender. Contact Amerappraise, LLC if you have any questions about the appraisal procedure.

Myth: Market value should be the same as the assessed value of the property.

Fact: While most states support the suggestion that assessed value equates estimated market value, this usually is not the case. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby houses are prime examples of why this occurs.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the appraised value of the property will vary.

Fact: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is created.

Myth: Any time market value is found, it should equate to the replacement cost of the property.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a certain home, with neither being under duress to buy or sell. Replacement cost is the dollar amount needed to reconstruct a home in-kind.

Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the value of a home.

Fact: An appraisal is an amalgamation of information based on the home's size, location, proximity to certain facilities, the condition of the property and the price of recent comparable sales. You can count on Amerappraise, LLC's staff to be honest in assessing this data.

Myth: As homes appreciate by a specific percentage - in a strong economic state - the properties around the appreciating properties are figured to increase by the same amount.

Fact: All increase of price is on a one-on-one basis, determined by data on relevant elements and the data of comparable homes. It makes no difference if the economy is robust or terrible.

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Myth: Just seeing what the property looks like on its exterior gives an idea of its cost.

Fact: Home value is determined by a number of variables, including location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by looking at the property from the outside.

Myth: Because the consumer is the party who provides the capital to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be provided with one by their lending company.

Myth: Home buyers need not worry about what is in their appraisal document so long as it meets the requirements of their lending group.

Fact: It is a very good idea for consumers to go through a copy of their appraisal report so that they can verify the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, since it contains a great deal 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: There is no reason to order an appraisal unless you are trying to get an estimate of the worth of a home during a sales transaction involving a lending agency.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a series 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: An appraisal report is no different than a home inspection report.

Fact: An appraisal does not fulfill the same purpose as an inspection. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. A home inspector assesses the condition of the house and its main components and reports these findings.