Appraisal myths debunked
Legally, a real estate appraiser must be state certified to create legitimate appraisal reports for federally-related purchase. You also have the right to demand a copy of the completed appraisal from your lending agency. Contact us if you have any concerns about the appraisal process.
Myth: Assessed value will always be similar to to market value.
Fact: While most states back the concept that assessed value equates estimated market value, this often is not the case. There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Williamsville have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller will have impact in the cost of the house depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is created.
Myth: The replacement value of the house is always is on par with the market value.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under pressure to buy or sell. The dollar amount needed to rebuild a home is what constitutes the replacement cost.
Myth: Certain methods, such as the price per square foot, are what appraisers use to determine the value of a house.
Fact: Appraisers make an exhaustive analysis of all factors in consideration to the cost of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.
Myth: As properties appreciate by a certain percentage - in a strong economy - the homes in proximity are expected to appreciate by the same amount.
Fact: Worth appreciation of a certain home must be concluded on an individualized basis, factoring in data on comparable properties and other relevant elements. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Erie County or Williamsville, NY?Contact our professional staff
Myth: The home's exterior is determinate of the actual worth of the house; it is unnecessary to do an interior inspection.
Fact: Home value is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data needed.
Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance your home, you own the produced appraisal.
Fact: The document is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal. Home buyers must be given a copy of the report through request as per the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal report so long as it exceeds the needs of their lending group.
Fact: A home buyer should definitely inspect their document; there will probably be some questions or some worries with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, filled with helpful and often-revealing 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a property during a sales transaction involving a lending company.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Fact: An appraisal report does not serve the same purpose as an inspection. An appraiser finds an opinion of value in the appraisal process and resulting report. The job of a home inspector is to assess the condition of the house and its major components, then write a report on their findings.