Appraisal myths & factsBy law, an appraiser is required to be state-licensed to offer appraisals for federally-supported purchases. Also by law, you are entitled to receive a copy of the completed appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal process. Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. At times when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for a good length of time, it may vary wildly. Myth: The buyer or the seller will have some pull in the value of the house depending upon for whom the appraiser is working.Fact: The appraiser has no vested interest in the result of the appraisal and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written. ![]() Myth: Any time market value is found, it should equate to the replacement cost of the house.Fact: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. If the property were reconstructed, the dollar amount necessary to do so would set the replacement cost. Myth: Specific formulae, such as the price per square foot of the property, are what appraisers use to come to the cost of a property.Fact: Appraisers complete a detailed analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes. Myth: In a strong economy - when the values of houses in a given county are found to be rising by a certain percentage - the prices of individual homes in the area can be expected to appreciate by that same percentage.Fact: All appreciation of worth is on a one-on-one basis, determined by information on relevant considerations and the data of comparable homes. This is true in strong economic times as well as poor. Have other questions about appraisers, appraising or real estate in Orange County or Seal Beach, CA? Contact our professional staffMyth: The property's outside is determinate of the actual value of the home; there is no need to do an interior inspection.Fact: To conclude an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. An external inspection certainly can't provide all of the information required. Myth: Since you're the one paying for the appraisal report when applying for your loan to purchase or refinance real estate, you own the provided appraisal report.Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. Because of the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given one by their lending agency. Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the requirements of their lending company.Fact: It is almost imperative for consumers to look at a copy of their report so that they can double-check the accuracy of the report, 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 report makes an excellent record for future reference, comprised of helpful and often-revealing data - 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: Appraisers are hired only to estimate house values in property sales involving mortgage-lending transactions.Fact: Appraisers can have many different qualifications and designations which allow them to perform a series 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: A home inspection serves the same purpose as an appraisal.Fact: Appraisal reports are definitely not the same as a home inspection. The appraiser finds an opinion of value in the appraisal process and resulting appraisal. The task of a home inspector is to approximate the condition of the property and its major components, then compose a report on their inspection. |
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