Common myths about appraising
Legally, a real estate appraiser must be state certified to create substantiated appraisal reports for federally-supported purchase. You have the ability to receive a copy of the finished appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value needs to be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the area have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the cost of the home will vary.
Fact: The opinion of value of the property does not affect the salary of the appraiser; due to this, the appraiser has no personal interest in the value of the home. Obviously, he will conduct job with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement value of the home is always is on par with the market value.
Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. The dollar amount demanded to reconstruct a home is what shows the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to arrive at the value of a property.
Fact: An appraisal report is an amalgamation of information concluded from the home's size, location, proximity to certain facilities, the condition of the home and the cost of recent comparable sales. You can rely on Shamrock Appraisals, Inc.'s appraisers to be forthright in assessing this information.
Myth: In a powerful economy - when the values of homes in a given neighborhood are found to be appreciating by a particular percentage - the worth of individual properties in the vicinity can be expected to increase by that same percentage.
Fact: All increase of worth is on an individual basis, determined by data on relevant considerations and the data of comparable houses. It doesn't matter if the economy is on the rise or declining.
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Myth: You can generally find what a home is worth simply by looking at the outside.
Fact: There are a number of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by inspecting the house from the outside.
Myth: Since you're the one providing the money for the appraisal when applying for your loan to purchase or refinance your home, you own the ordered appraisal.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be provided with one by their lending agency.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the requirements of their lender.
Fact: Only if home buyers look over a copy of their appraisal can they double-check its accuracy and possibly need to question the result. 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, containing useful and often-revealing 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the worth of a home during a sales transaction involving a lender.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal report. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. A home inspector assesses the condition of the house and its major components and reports their findings.