Appraisal myths & facts
It is required by legal agencies that a real estate appraiser is required to be state-licensed to offer appraisal reports for federally-related home sales in Alabama. You have the ability to request a copy of the finished appraisal from your lender. Contact Shamrock Appraisals, Inc. if you have any concerns about the appraisal process.
Myth: Assessed value should always be similar to to market value.
Fact: It is possible that Alabama, like most states, supports the idea that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby properties are exact examples of why the price can vary.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no personal interest in the result of the report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the property is always is on par with the market value.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any outside party to purchase or sell. Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to conclude the value of a home.
Fact: An appraisal report is a collection of data based on the home's size, location, proximity to certain facilities, the condition of the home and the value of recent comparable sales. You can count on Shamrock Appraisals, Inc.'s appraisers to be professional in assessing this data.
Myth: When the economy is robust and the sales prices of properties are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to increase based on that same percentage.
Fact: Value increase of a certain house is always concluded on an individualized basis, factoring in information on comparable homes and other relevant elements. This is true in strong economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?Contact Shamrock Appraisals, Inc.
Myth: You can usually tell what a property is worth simply by looking at the outside.
Fact: There are a number of different factors that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just viewing the home from the outside.
Myth: Since you're the one funding for the appraisal when applying for your loan to buy or refinance your house, you own the produced appraisal report.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. However, home buyers have to be given a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even concern themselves with what the report contains so long as their lending institution is fine with the contents therein.
Fact: Only if home buyers check out a copy of their appraisal report 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. An report can serve as a record for the future, since it contains a great deal of 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: Appraisers are hired only to estimate home values in property sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and do provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal. An appraiser finds an opinion of value in the appraisal process and resulting document. The point of a home inspector is to determine the condition of the property and its major components, then produce a report on their findings.