Common myths about appraising
Legally, a real estate appraiser needs to be state certified to write substantiated real estate appraisals for federally-backed transactions. The law entitles you to receive a copy of your finished report from your lending agency after it has been produced. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should always be the same as to market value.
Fact: While most states back the concept that assessed value equates estimated market value, this usually is not the case. At times when interior remodeling has been done and the assessor is unaware of the improvement or properties in the Seal Beach have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller will have some pull in the value of the property depending upon for whom the appraiser is working.
Fact: The opinion of value of the property does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the cost of the property. What this means is he will conduct job with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the house is always is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a house without being under pressure from any outside group to buy or sell. If the property were rebuilt, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to arrive at the worth of a home.
Fact: There are many different calculations that an appraiser will use to make a comprehensive analysis of every factor pertaining to the property, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable properties.
Myth: As houses increase their worth by a certain percentage - in a strong economic state - the houses around the appreciating properties are figured to increase by the same amount.
Fact: Worth appreciation of a specific property has to be concluded on an individualized basis, factoring in information on comparable properties and other relevant specifications within the house itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Orange County or Seal Beach, CA?Contact Associate Appraisers of America
Myth: You can commonly see what a property is worth simply by looking at the exterior.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this information from simply inspecting the property from the outside.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to buy or refinance real estate, you own the provided appraisal report.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the appraisal. Because of the Equal Credit Opportunity Act, any consumer requesting a copy of the report must be given it by their lending company.
Myth: There's no need for consumers to even worry about what the appraisal report contains so long as their lending company is satisfied.
Fact: It is a very good idea for home buyers to go through a copy of their report so that they can double-check the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve 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 vicinity.
Myth: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.
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: An appraisal is no different than a home inspection report.
Fact: Appraisal reports are completely different than a home inspection. An appraiser forms an opinion of value in the appraisal process and resulting appraisal. House inspectors will create a report that will express the condition of the property and its major components and possible damage.
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