Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-supported purchases. Also by law, you are entitled to receive a copy of the completed report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value will always be equal to market value.
Fact: It is possible that Louisiana, like most states, validates the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby houses are prime examples of why this occurs.
Myth: The value of a house will differ depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is written.
Myth: Market value should be the same as replacement cost.
Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any external group to purchase or sell. Replacement value is the dollar amount needed to reconstruct a property in-kind.
Myth: Appraisers use a calculation, like a certain price per square foot, to come to the cost of a home.
Fact: An appraisal is a collection of data concluded from the home's size, location, proximity to undesirable facilities, the condition of the house and the value of recent comparable sales. You can count on Crescent Appraisal Group, Inc.'s staff to be honest in assessing this information.
Myth: When the economy is on the rise and the worth of properties are reported to be appreciating by a certain percentage, the other homes in the area can be expected to appreciate based on that same percentage.
Fact: All appreciation of price is on an individual basis, determined by information on relevant elements and the data of comparable properties. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact Crescent Appraisal Group, Inc.
Myth: You can generally find what a house is worth simply by looking at the exterior.
Fact: There are a number of different factors that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply inspecting the home from the exterior.
Myth: Because the consumer is the party who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: The document is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. Under the Equal Credit Opportunity Act, any consumer demanding a copy of the appraisal report must be given it by their lender.
Myth: There's no need for consumers to even care about what the appraisal report contains so long as their lending company is fine with the contents therein.
Fact: It is a very good idea for consumers to check over a copy of their report so that they can verify the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, comprised of helpful and often-revealing data - including 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: Appraisers are hired only to estimate building values in property sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and do provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are nothing like a home inspection. The job of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report. A home inspector assesses the condition of the property and its major components and reports these findings.