Common myths about appraising

Legally, an appraiser is required to be state certified to write substantiated real estate appraisals for federally-backed transactions. You are also entitled by law to acquire a copy of the completed appraisal report from your lending agency. Contact Shamrock Appraisals, Inc. if you have any concerns about the appraisal process.

Myth: Market value will always be similar to the assessed value of the property.

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an prolonged time.

Myth: The buyer or the seller may have an influence in the cost of the house depending upon for whom the appraiser is working.

Fact: The appraiser has no vested interest in the outcome of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written.

Myth: Market value should equate to replacement cost.

Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under undue influence to buy or sell. The dollar amount necessary to rebuild a property is what constitutes the replacement cost.

Myth: Certain methods, such as the price per square foot, are the ways appraisers use to come to the value of a property.

Fact: An appraisal report is an assertion of data concluded from the property's size, location, proximity to specific facilities, the condition of the house and the price of recent comparable sales. You can count on Shamrock Appraisals, Inc.'s staff to be professional in assessing this information.

Myth: In a powerful economy - when the sales prices of homes in a given neighborhood are reported to be increasing by a certain percentage - the values of individual properties in the vicinity can be expected to rise by that same percentage.

Fact: Any price at which an appraiser arrives concerning a certain home is always personalized, based on certain factors found from the information of comparable houses and other considerations within the home itself. It makes no difference if the economy is excellent or bad.

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

Contact Shamrock Appraisals, Inc.

Myth: You can commonly see what a house is worth simply by looking at the exterior.

Fact: House worth is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just viewing the property from the outside.

Myth: Considering that the consumer is the party who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Legally, the appraisal is owned by the lender unless the lender relinquishes their interest in the report. However, consumers must be given a copy of the report upon written request, due to the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their document so long as it satisfies the necessities of their lending group.

Fact: Only if consumers read 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. There is a great deal of data contained in an appraisal report that could be useful to the consumer 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 proximity.

Myth: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender sales transaction.

Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

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

Fact: Appraisal reports are completely different than a home inspection report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. A home inspector determines the condition of the home and its major components and reports these findings.