Common myths about appraising
By law, an appraiser is required to be state-licensed to produce appraisals for federally-related transactions. You are also entitled by law to receive a copy of the completed appraisal report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be equivalent to the market value.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the area have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller can have impact in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value will equal replacement cost.
Fact: The way market value is derived is based on what a buyer would likely pay a willing seller for a property without being under duress from any external party to purchase or sell. The dollar amount necessary to reconstruct a home is what constitutes the replacement cost.
Myth: There are specific methods that appraisers use to determine the value of a home, like the price per square foot.
Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the worth of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: When the economy is doing well and the worth of properties are reported to be rising by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Any price at which an appraiser concludes concerning a certain house is always individualized, based on certain factors found from the information of comparable homes and other specifications within the home itself. It makes no difference if the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact Crescent Appraisal Group, Inc.
Myth: Just looking at what the property looks like on the outside gives a good idea of its value.
Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. There's no real way to get all of this information from just looking at the home from the outside.
Myth: Since you're the one providing the money for the appraisal when applying for your loan to buy or refinance your home, you own the ordered appraisal.
Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. Consumers must be given a version of the document through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their report so long as it satisfies the needs of their lending agency.
Fact: It is very important for home buyers to read a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, since it contains a great deal of information - 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 proximity.
Myth: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender sales transaction.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't have to get an appraisal if you get a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection report. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. The point of a home inspector is to determine the condition of the home and its main components, then compose a report on these findings.