Appraisal myths & facts
Legally, an appraiser is required to be state certified to produce substantiated real estate appraisals for federally-related sales. The law allows you to get a copy of your completed appraisal from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal process.
Myth: Market value will always be similar 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 has not seen the improvements, or when houses in the area have not been reassessed for an prolonged time.
Myth: The buyer or the seller may have some pull in the value of the house depending upon for whom the appraiser is working.
Fact: The price of the house does not affect the salary of the appraiser; as such, the appraiser has no preconceived interest in the opinion of value of the property. What this means is he will complete his business with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Market value should be the same as replacement cost.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell. If the home were rebuilt, the dollar amount needed to do so would form the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the opinion of value 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 some facilities, the condition of the property and the price of recent comparable sales. You can depend on Anderson Appraisal, LLC's staff to be honest in assessing this data.
Myth: In a robust economy - when the costs of properties in a given region are reported to be rising by a particular percentage - the values of individual houses in the vicinity can be expected to increase by that same percentage.
Fact: All increase of worth is on an individual basis, concluded by information on relevant considerations and the data of comparable homes. 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 us
Myth: The house's exterior is determinate of the actual price of the home; it is unnecessary to do an interior appraisal.
Fact: To determine an accurate value beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the information necessary.
Myth: Since the consumer is the person who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Legally, the report is owned by the lending company unless the lender relinquishes their interest in the appraisal. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with it by their lender.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the requirements of their lender.
Fact: Only if consumers examine 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 an incredible amount of data contained in an 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 proximity.
Myth: The only reason someone would order an appraisal is if a property needs its cost assessed in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The point of 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 analyzes the condition of the home and its major components and reports these findings.