Appraisal myths debunked
It is enforced by law that an appraiser is required to be state-licensed to perform appraisals for federally-supported home sales in Texas. You have the ability to receive a copy of the completed report from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Assessed value should be similar to to market value.
Fact: It might be that Texas, like most states, validates the common myth that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are exact examples of why the price can vary.
Myth: The appraised value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is ordered.
Myth: Any time market value is found, it should be similar to the replacement cost of the home.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under pressure from any outside party to purchase or sell. If the house were reconstructed, the dollar amount necessary to do so would form the replacement cost.
Myth: Appraisers use a formula, such as a certain price per square foot, to conclude the value of a house.
Fact: Appraisers complete a full analysis of all factors pertaining to the value of a home, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: In a strong economy - when the worth of homes in a given area are reported to be rising by a certain percentage - the prices of individual houses in the proximity can be expected to appreciate by that same percentage.
Fact: Any cost at which an appraiser arrives concerning a certain property is always individualized, based on certain factors pulled from the information of comparable houses and other considerations within the house itself. 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: You can commonly find what a house is worth simply by looking at the outside.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no possible way to get all of this information from just looking at the property from the exterior.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their home, they own their appraisal report.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with it by their lending agency.
Myth: Consumers need not worry about what is in their document so long as it exceeds the requirements of their lending company.
Fact: Only if home buyers examine a copy of their appraisal report can they double-check 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 wealth of data contained in an report that can be useful to the home buyer 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: There is no reason to order an appraisal unless you are trying to get an estimate of the worth of a property during a sales transaction involving a lending company.
Fact: Based upon their qualifications and designations, appraisers can and often do perform a series 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 report. The job of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. House inspectors will write a report that will express the condition of the home and its major components and possible damage.