Common myths about appraising

Legally, an appraiser needs to be state certified to produce substantiated real estate appraisals for federally-related transactions. Also by law, you have the right to receive 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 will always be the same as to market value.

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

Myth: Depending on if the appraisal is ordered for the buyer or the seller, the value of the property will vary.

Fact: The cost of the property does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the value of the home. This means that he will render task with impartiality and independence regardless for whom the appraisal is conducted.

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 particular home, with neither being under duress to buy or sell. If the house were rebuilt, the dollar amount required to do so would form the replacement cost.

Myth: Appraisers use a formula, like a certain price per square foot, to figure out the value of a property.

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

Myth: In a powerful economy - when the prices of properties in a given county are reported to be increasing by a particular percentage - the worth of individual properties in the area can be expected to increase by that same percentage.

Fact: All appreciation of worth is on a one-on-one basis, concluded by data on relevant elements and the data of comparable homes. It makes no difference whether the economy is strong or terrible.

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

Contact Shamrock Appraisals, Inc.

Myth: Just looking at what the house looks like on its exterior gives an idea of its cost.

Fact: To determine an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just examining the home from the outside.

Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance real estate, you own the produced appraisal report.

Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the report. However, consumers have to be given a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.

Myth: There's no point for consumers to even care about what the appraisal contains so long as their lending agency is satisfied.

Fact: Only if home buyers check out a copy of their report can they ensure 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 an incredible amount of data stored in an appraisal report that should be useful to the home buyer 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 area.

Myth: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.

Fact: Hiring an appraiser can fulfill a variety of requirements 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: You shouldn't need to get an appraisal if you have had a home inspection.

Fact: A home inspection report has a completely different purpose than an appraisal. The job of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. House inspectors will compose a report that will explain the condition of the property and its major components and possible damage.