Common myths about appraising
It is required by the government that an appraiser needs to be state-licensed to produce appraisal reports for federally-related home transactions in Delaware. You are also entitled by law to demand a copy of the completed report from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value will always be the same as the assessed value of the property.
Fact: It is possible that Delaware, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended time.
Myth: The buyer or the seller may have an influence in the value of the property depending upon for whom the appraiser is working.
Fact: The cost of the home does not affect the payment of the appraiser; as such, the appraiser has no vested interest in the cost of the property. This means that he will provide business with impartiality and objectivity regardless for whom the appraisal is provided.
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 specific home, with neither being under undue influence to buy or sell. The dollar amount needed to reconstruct a property is what shows the replacement cost.
Myth: Certain methods, like the price per square foot of the property, are what appraisers use to ascertain the cost of a property.
Fact: An appraisal 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 count on Amerappraise, LLC's appraisers to be professional in assessing this information.
Myth: When the economy is doing well and the cost of homes are reported to be increasing by a certain percentage, the other homes in the vicinity can be expected to increase based on that same percentage.
Fact: All increase of worth is on an individual basis, found by data on relevant considerations and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.
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Myth: Just looking at what the house looks like on its exterior gives an excellent idea of its cost.
Fact: There are a multitude of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived just by examining the property from the exterior.
Myth: Considering that the consumer is the party who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. However, consumers must be provided with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the report so long as it meets the necessities of their lending agency.
Fact: A home buyer should definitely look through their report; there might be some questions or some concerns with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, filled with helpful and often-revealing 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: The only reason someone would order an appraisal is if a house needs its worth estimated in a lender sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but 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.
Fact: An appraisal does not serve the same purpose as an inspection. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. A home inspector determines the condition of the property and its major components and reports their findings.