Appraisal myths & facts
By law, an appraiser is required to be state-licensed to perform appraisals for federally-related transactions. You have the ability to request a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Market value must be equivocal to the assessed value of the property.
Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. At times when interior remodeling has been done and the assessor is not aware of the improvement or properties in the area have not been reassessed for years or more, it may vary wildly.
Myth: The value of a house will differ depending upon whether the appraisal is provided for the buyer or the seller.
Fact: The price of the home does not affect the salary of the appraiser; as a result, the appraiser has no preconceived interest in the value of the house. This means that he will render services with impartiality and independence regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should be the same as the replacement cost of the property.
Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a home without being under duress from any outside group to purchase or sell. If the property were reconstructed, the dollar amount needed to do so would set the replacement cost.
Myth: Specific formulae, like the price per square foot of the property, are what appraisers use to ascertain the value of a property.
Fact: An appraisal report is an amalgamation of information based on the house's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can rely on Crescent Appraisal Group, Inc.'s staff to be ethical in assessing this information.
Myth: As homes increase their worth by a certain percentage - in a robust economy - the properties within the same neighborhood are expected to increase by the same amount.
Fact: All appreciation of price is on a one-on-one basis, found by information on relevant considerations and the data of comparable homes. It makes no difference if the economy is powerful or bad.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact us
Myth: The home's outside is determinate of the actual worth of the home; there is no need to do an interior appraisal.
Fact: To find an accurate value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data needed.
Myth: Because the consumer is the party who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending agency that ordered the appraisal. Home buyers have to be supplied with a copy of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even care about what the report contains so long as their lender is fine with the contents therein.
Fact: Only if consumers read a copy of their 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 information contained in an report that could 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: Appraisers are hired only to estimate building values in property sales involving mortgage-lending transactions.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal. The purpose of the appraiser is to form an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to approximate the condition of the property and its major components, then create a report on their findings.