Appraisal myths debunked
Legally, an appraiser must be state certified to perform legitimate real estate appraisals for federally-backed transactions. Also by law, you are allowed to request a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Assessed value should be equal to market value.
Fact: It could be that Texas, like most states, validates the idea that the assessed value is no different from the market value; however, this is not often the case. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when homes in the vicinity have not been reassessed for an extended period of time.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the appraised value of the property will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the house should be is on par with the market value.
Fact: Without any pressure from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. Replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to come to the price of a house.
Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to specific facilities, the condition of the home and the price of recent comparable sales. You can count on Anderson Appraisal, LLC's appraisers to be professional in assessing this information.
Myth: In a strong economy - when the values of properties in a given region are reported to be appreciating by a certain percentage - the values of individual properties in the area can be expected to rise by that same percentage.
Fact: All increase of worth is on a case-by-case basis, determined by information on relevant considerations and the data of comparable properties. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Randall County or Amarillo, TX?Contact Anderson Appraisal, LLC
Myth: Just seeing what the house looks like on its exterior gives an idea of its cost.
Fact: To find an accurate price beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these things can be found simply by viewing the house from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance your house, you own the ordered appraisal.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Consumers have to be supplied with a copy of the report upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their document so long as it meets the needs of their lending group.
Fact: A home buyer should definitely read through their appraisal; there will probably be some questions or some concerns with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal that could 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 proximity.
Myth: Appraisers are hired only to estimate building values in home sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and often do perform a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. A home inspector assesses the condition of the property and its main components and reports these findings.