Appraisal myths debunked
Legally, an appraiser is required to be state certified to create legitimate appraisal reports for federally-related transactions. Also by law, you are allowed to receive a copy of the finished appraisal from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value will always be equivocal to the assessed value of the property.
Fact: While most states back the suggestion that assessed value is the same as estimated market value, this generally is not the case. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby properties are excellent examples of why there might be a differential in price.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the house will vary.
Fact: There is no real interest on the part of the appraiser in the result of the report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is written.
Myth: The replacement cost of the house is always is on par with the market value.
Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under duress to buy or sell. If the home were reconstructed, the dollar amount needed to do so would set the replacement cost.
Myth: There are certain methods that real estate appraisers use to find the cost of a house, such as the price per square foot.
Fact: An appraisal report is an assertion of data concluded from the house's size, location, proximity to specific facilities, the condition of the house and the value of recent comparable sales. You can rely on Abandy & Associates Appraisal Services's staff to be forthright in assessing this information.
Myth: As houses increase their worth by a certain percentage - in a robust economy - the properties around the appreciating properties are figured to appreciate by the same amount.
Fact: Cost appreciation of a certain property is always concluded on an individualized basis, factoring in data on comparable homes and other relevant elements. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in San Bernardino County or Chino Hills, CA?Contact our professional staff
Myth: You can generally see what a house is worth simply by looking at the outside.
Fact: There are a multitude of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just examining the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance real estate, they own their appraisal.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Because of the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be provided with one by their lending agency.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lending company.
Fact: Only if home buyers check out a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored in an appraisal report that will probably be useful to the consumer 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 home values in property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is no different than a home inspection report.
Fact: An appraisal report does not serve the same purpose as an inspection report. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. The point of a home inspector is to determine the condition of the house and its main components, then create a report on their findings.