Appraisal myths & facts

It is required by law that a real estate appraiser must be state-licensed to create appraisal reports for federally-supported property sales in Alabama. Also by law, you are allowed to demand a copy of the finished appraisal from your lender. Contact Shamrock Appraisals, Inc. if you have any concerns about the appraisal procedure.

Myth: Assessed value should always be similar to to market value.

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. There are times when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the Tuscaloosa have not been reassessed for quite some time, it may vary wildly.

Myth: The buyer or the seller often will have some pull in the cost of the property depending upon for whom the appraiser is working.

Fact: The value of the home does not affect the pay of the appraiser; as a result, the appraiser has no preconceived interest in the opinion of value of the property. This means that he will conduct services 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: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any outside group to purchase or sell. The replacement cost is the dollar amount needed to reconstruct a home in-kind.

Myth: Certain methods, like the price per square foot of the property, are the methods appraisers use to arrive at the worth of a home.

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

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

Fact: Any worth at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors found from the information of comparable houses and other specifications within the home itself. This is true in strong economic times as well as poor.

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

Fact: To conclude an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. An exterior inspection certainly can't provide all of the data necessary.

Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your house, you own the ordered appraisal.

Fact: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the appraisal. Consumers must be provided with a copy of the report through request as per the Equal Credit Opportunity Act.

Myth: Consumers need not worry about what is in their document so long as it meets the needs of their lending agency.

Fact: It is very important for consumers to go through a copy of their appraisal report so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an 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 region.

Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a property during a sales transaction involving a lender.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

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

Fact: A home inspection report has a completely different purpose than an appraisal report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. The task of a home inspector is to find the condition of the property and its major components, then produce a report on these inspection.