Appraisal myths debunked
It is mandated by law that a real estate appraiser must be state-licensed to create appraisals for federally-supported home sales in California. You are also entitled by law to acquire a copy of the finished appraisal from your lender. Contact Associate Appraisers of America if you have any concerns about the appraisal process.
Myth: Assessed value generally will be similar to to market value.
Fact: While most states support the suggestion that assessed value is equal to estimated market value, this usually is not the case. There are times when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the Seal Beach have not been reassessed for quite a while, it may vary wildly.
Myth: The value of a property will be different depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The cost of the home does not affect the pay of the appraiser; as a result, the appraiser has no pressured interest in the value of the home. Obviously, he will render task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Market value should equal 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 property. Replacement cost is the dollar amount necessary to rebuild a house in-kind.
Myth: Specific formulae, like the price per square foot, are the methods appraisers use to ascertain the value of a property.
Fact: An appraisal report is an amalgamation of data concluded from the home's size, location, proximity to some facilities, the condition of the house and the value of recent comparable sales. You can depend on Associate Appraisers of America's appraisers to be honest in assessing this data.
Myth: In a powerful economy - when the worth of houses in a given neighborhood are found to be increasing by a certain percentage - the costs of individual homes in the proximity can be expected to appreciate by that same percentage.
Fact: All appreciation of worth is on an individual basis, determined by data on relevant conditions and the data of comparable houses. It makes no difference whether the economy is robust or on the decline.
Have other questions about appraisers, appraising or real estate in Orange County or Seal Beach, CA?Contact Associate Appraisers of America
Myth: The home's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior appraisal.
Fact: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by inspecting the property from the outside.
Myth: Because the consumer is the one who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be provided with it by their lending company.
Myth: Home buyers need not care about what is in their appraisal so long as it exceeds the requirements of their lending institution.
Fact: It is very important for consumers to peruse a copy of their report so that they can verify 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. There is an incredible amount of data stored in an appraisal that could be useful to the home buyer in the future, such as 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 estimate house values in home sales involving mortgage-lending transactions.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is the same as a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. A home inspector analyzes the condition of the house and its main components and reports these findings.
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