Appraisal myths debunked
By law, an appraiser is required to be state-licensed to offer appraisals for federally-supported sales. Also by law, you have the ability to receive a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal process.
Myth: Market value should be similar to the assessed value of the property.
Fact: While most states back the suggestion that assessed value approximates estimated market value, this commonly is not the case. Sometimes when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Seal Beach have not been reassessed for quite some time, it may vary wildly.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the home will vary.
Fact: The appraised value of the property does not affect the salary of the appraiser; as such, the appraiser has no vested interest in the opinion of value of the home. Obviously, he will complete his job with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is established, it should be similar to the replacement cost of the home.
Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home. Replacement value is the dollar amount required to reconstruct a home in-kind.
Myth: There are specific methods that real estate appraisers use to determine the opinion of value of a property, such as the price per square foot.
Fact: An appraisal report is an amalgamation of data based on the property's size, location, proximity to specific facilities, the condition of the home and the price of recent comparable sales. You can count on Associate Appraisers of America's staff to be forthright in assessing this data.
Myth: When the economy is on the rise and the worth of homes are reported to be rising by a certain percentage, the other houses in the vicinity can be expected to rise based on that same percentage.
Fact: Any worth at which an appraiser arrives in regards to a certain home is always individualized, based on certain factors pulled from the data of comparable homes and other considerations within the property itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Orange County or Seal Beach, CA?Contact our professional staff
Myth: The home's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior appraisal.
Fact: To find an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these things can be found simply by looking at the home from the exterior.
Myth: Since you're the one funding for the appraisal when applying for your loan to buy or refinance real estate, you own the produced appraisal report.
Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the report. However, home buyers have to be supplied with a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it meets the requirements of their lending agency.
Fact: It is almost imperative for consumers to go through a copy of their report so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, comprised of helpful and often-revealing 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a house during a sales transaction involving a lending institution.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not serve the same purpose as an inspection. An appraiser finds an opinion of value in the appraisal process and resulting document. A home inspector determines the condition of the home and its main components and reports their findings.
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