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Common myths about appraising

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

Myth: Assessed value will always be similar to to market value.

Fact: While most states back the suggestion that assessed value is equal to estimated market value, this generally is not the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby homes are perfect examples of why this occurs.

Myth: The buyer or the seller sometimes may have some pull in the value of the house depending upon for whom the appraiser is working.

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

Myth: The replacement cost of the property should be is on par with the market value.

Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific home. The replacement cost is the dollar amount needed to rebuild a home in-kind.

Myth: There are certain ways that appraisers use to show the cost of a house, like the price per square foot.

Fact: Appraisers complete a detailed analysis of all factors pertaining to the worth of a home, including its location, condition, size, proximity to facilities and recent costs of comparable homes.

Myth: In a robust economy - when the sales prices of properties in a given neighborhood are reported to be rising by a particular percentage - the worth of individual houses in the vicinity can be expected to appreciate by that same percentage.

Fact: Any cost at which an appraiser arrives concerning a specific home is always personalized, based on certain factors derived from the information of comparable homes and other considerations within the home itself. This is true in excellent 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 the outside gives an excellent idea of its cost.

Fact: Property value is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived simply by looking at the house from the exterior.

Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their property, they own their appraisal report.

Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the document. Due the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be given one by their lender.

Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the necessities of their lender.

Fact: It is almost imperative for home buyers to go through a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an report that can be useful to the home buyer in the future, such as 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 lender.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: An appraisal is no different than a home inspection report.

Fact: A home inspection has a completely different purpose than an appraisal report. The reason behind an appraisal is to find an opinion of fair market value during the appraisal process and the production of the report. The job of a home inspector is to find the condition of the home and its major components, then create a report on their conclusions.