Common myths about appraising
Legally, an appraiser has to be state certified to produce substantiated real estate appraisals for federally-supported sales. Also by law, you have the right to request a copy of the finished report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser is required to be exactly the same as the market value.
Fact: It is probable that Alabama, like most states, supports the common myth that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Generally when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the area have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the opinion of value of the home will vary.
Fact: The opinion of value of the property does not affect the salary of the appraiser; as a result, the appraiser has no pressured interest in the value of the house. This means that he will conduct business with impartiality and independence regardless for whom the appraisal is produced.
Myth: Market value should be the same as replacement cost.
Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. The replacement cost is the dollar amount required to reconstruct a home in-kind.
Myth: Specific formulae, like the price per square foot, are what appraisers use to come to the price of a property.
Fact: An appraisal report is a collection of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the home and the value of recent comparable sales. You can rely on Shamrock Appraisals, Inc.'s staff to be professional in assessing this information.
Myth: In a powerful economy - when the costs of properties in a given region are reported to be rising by a particular percentage - the worth of individual properties in the vicinity can be expected to increase by that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a specific home is always individualized, based on certain factors found from the data of comparable properties and other considerations within the property itself. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Tuscaloosa County or Tuscaloosa, AL?Contact our professional staff
Myth: You can usually see what a property is worth simply by looking at the outside.
Fact: Home worth is concluded by a multitude of variables, including area, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the information necessary.
Myth: Since you're the one paying for the appraisal when applying for the loan to buy or refinance real estate, you own the ordered appraisal report.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal. Consumers must be supplied with a copy of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.
Fact: It is a very good idea for home buyers to look at a copy of their appraisal report so that they can double-check the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, comprised of useful and often-revealing data - including 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: There is no reason to order an appraisal unless you are trying to get an assessment of the price of a house during a sales transaction involving a lending agency.
Fact: Ordering an appraisal can fulfill a variety of requirements 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: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection report. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. A home inspector analyzes the condition of the house and its major components and reports their findings.