Common myths about appraising

It is enforced by the government that an appraiser needs to be state-licensed to write appraisal reports for federally-related real estate sales in Alabama. The law allows you to receive a copy of your finished appraisal report from your lender after it has been provided. Contact us if you have any questions about the appraisal procedure.

Myth: The value that is assessed by the appraiser must be equivalent to the market value.

Fact: It could be that Alabama, like most states, validates the common myth that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby properties are excellent examples of why the price can vary.

Myth: The appraised value of a property will vary depending upon if the appraisal is provided for the buyer or the seller.

Fact: The opinion of value of the home does not affect the payment of the appraiser; as a result, the appraiser has no pressured interest in the value of the property. Obviously, he will provide business with impartiality and independence regardless for whom the appraisal is produced.

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

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

Myth: Specific formulae, like the price per square foot of the property, are the ways appraisers use to determine the cost of a home.

Fact: Appraisers complete a detailed analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.

Myth: When the economy is strong and the worth of houses are found to be appreciating by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.

Fact: All increase of worth is on an individual basis, determined by data on relevant elements and the data of comparable homes. It makes no difference whether the economy is powerful or on the decline.

Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?

Contact Shamrock Appraisals, Inc.

Myth: The home's exterior is determinate of the actual price of the house; there is no need to do an interior appraisal.

Fact: Property value is concluded by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the data required.

Myth: Because the consumer is the one who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.

Fact: The document is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the report. Consumers must be supplied with a version of the report upon written request due to the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their appraisal so long as it exceeds the necessities of their lending institution.

Fact: It is very important for home buyers to look at a copy of their appraisal so that they can verify 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. An report can double 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: Appraisers are hired only to assess building values in house sales involving mortgage-lending transactions.

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: You don't have to get an appraisal if you get a home inspection.

Fact: An appraisal report does not serve the same purpose as an inspection. The job of the appraiser is to form an opinion of value in the appraisal process and through creating the report. A home inspector analyzes the condition of the house and its main components and reports their findings.