Appraisal myths debunked
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-related purchases. Also by law, you have the ability to request a copy of the completed appraisal from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: It is possible that Alabama, like most states, validates the common myth that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby properties are prime examples of why this occurs.
Myth: The buyer or the seller sometimes may have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The appraised value of the house does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the cost of the property. This means that he will complete his task with impartiality and independence regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equal the replacement cost of the property.
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 duress from any outside group to purchase or sell. Replacement cost is the dollar amount needed to rebuild a home in-kind.
Myth: There are certain methods that appraisers use to determine the value of a home, like the price per square foot.
Fact: There are many different ways that an appraiser will use to make a comprehensive investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable homes.
Myth: As properties increase their worth by a certain percentage - in a robust economy - the homes nearby are figured to increase by the same amount.
Fact: Any value at which an appraiser arrives concerning a particular house is always individualized, based on certain factors derived from the information of comparable properties and other considerations within the house itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?Contact Shamrock Appraisals, Inc.
Myth: The property's outside is determinate of the actual worth of the property; there is no need to do an interior appraisal.
Fact: To find an accurate value beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these things can be found just by viewing the property from the outside.
Myth: Since the consumer is the party who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. However, home buyers must be supplied with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their report so long as it meets the needs of their lending group.
Fact: Only if consumers look at 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. An report can double as a record for the future, containing an exorbitant amount of 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 area.
Myth: The only reason someone would hire an appraiser is if a house needs its value estimated in a lender-based sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a lot of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. The appraiser finds an opinion of value in the appraisal process and resulting report. House inspectors will write a report that will explain the condition of the house and its major components and possible damage.