Appraisal myths & facts
It is required by legal agencies that an appraiser is required to be state-licensed to offer appraisal reports for federally-supported real estate purchases in Washington. You have the ability to demand a copy of the completed 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: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when homes in the vicinity have not been reassessed for an extended period.
Myth: The appraised value of a property will be different depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value should be the same as replacement cost.
Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a specific house, with neither being under pressure to buy or sell. The dollar amount necessary to rebuild a house is what constitutes the replacement cost.
Myth: Certain formulae, like the price per square foot, are the ways appraisers use to determine the value of a property.
Fact: Appraisers complete a detailed analysis of all factors pertaining to the worth of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable houses.
Myth: As homes increase their worth by a certain percentage - in a robust economy - the properties around the appreciating properties are expected to appreciate by the same amount.
Fact: All appreciation of worth is on an individual basis, found by data on relevant considerations and the data of comparable homes. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Clark County or Vancouver, WA?Contact our professional staff
Myth: You can often find what a house is worth simply by looking at the outside.
Fact: There are a multitude of different variables that conclude property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just looking at the house from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal.
Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the report. Due the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be provided with one by their lender.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lending agency.
Fact: Only if consumers read a copy of their appraisal report can they verify its accuracy and possibly need to question the result. 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 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 proximity.
Myth: The only reason someone would order an appraisal is if a house needs its value estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. The reason behind an appraisal report is to form an opinion of fair market value during the appraisal process and the completion of the report. A home inspector assesses the condition of the building and its major components and reports their findings.