Appraisal myths debunked
Legally, a real estate appraiser has to be state certified to produce legitimate real estate appraisals for federally-supported sales. The law allows you to get a copy of your completed appraisal from your lender after it has been provided. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value should always be equal to market value.
Fact: While most states back the idea that assessed value is equal to estimated market value, this often is not the case. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged period of time.
Myth: The opinion of value of a property will change depending upon if the appraisal is ordered for the buyer or the seller.
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 created.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under undue influence to buy or sell. If the house were reconstructed, the dollar amount needed to do so would be the replacement cost.
Myth: There are certain methods that real estate appraisers use to show the value of a house, such as the price per square foot.
Fact: An appraisal is a collection of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the cost of recent comparable sales. You can rely on Anderson & Associates's appraisers to be forthright in assessing this data.
Myth: When the economy is strong and the cost of properties are reported to be appreciating by a certain percentage, the other houses in the area can be expected to rise based on that same percentage.
Fact: Price appreciation of a certain house is always concluded on a case-by-case basis, factoring in information on comparable properties and other relevant considerations. It makes no difference if the economy is excellent or on the decline.
Have other questions about appraisers, appraising or real estate in Clark County or Vancouver, WA?Contact our professional staff
Myth: You can generally see what a home is worth simply by looking at the exterior.
Fact: There are a multitude of different factors that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the data needed.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance real estate, you own the ordered appraisal.
Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending agency that ordered the appraisal. However, home buyers must be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even care about what the appraisal report contains so long as their lending institution is satisfied.
Fact: Only if consumers read a copy of their appraisal report 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. An report can double as a record for the future, containing a great deal of data - including, but certainly 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: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a home during a sales transaction involving a lending agency.
Fact: Based upon their qualifications and designations, appraisers can and do provide a variety 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.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The reason behind an appraisal is to find an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector analyzes the condition of the house and its main components and reports their findings.