Common myths about appraising
By law, an appraiser needs to be state-licensed to offer appraisals for federally-related purchases. You are also entitled by law to demand a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal process.
Myth: Market value will always be the same as the assessed value of the property.
Fact: It might be that Louisiana, like most states, supports the idea that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended time.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the opinion of value of the home will vary.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.
Myth: Market value should equal replacement cost.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific property. Replacement value is the dollar amount necessary to reconstruct a property in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the methods appraisers use to arrive at the value of a home.
Fact: An appraisal is a collection of data based on the home's size, location, proximity to specific facilities, the condition of the home and the cost of recent comparable sales. You can count on Crescent Appraisal Group, Inc.'s staff to be professional in assessing this information.
Myth: In a robust economy - when the worth of homes in a given county are found to be appreciating by a certain percentage - the prices of individual properties in the area can be expected to appreciate by that same percentage.
Fact: Cost appreciation of a certain house must be concluded on a case-by-case basis, factoring in information on comparable houses and other relevant specifications within the house itself. It makes no difference whether the economy is strong or poor.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact our professional staff
Myth: The house's exterior is determinate of the actual price of the property; there is no need to do an interior inspection.
Fact: There are a multitude of different variables that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the information needed.
Myth: Considering that the consumer is the one who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the necessities of their lender.
Fact: Only if consumers look over a copy of their appraisal can they verify 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 great deal of data contained in an appraisal 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 proximity.
Myth: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection. The job of the appraiser is to find an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the building and its major components and reports their findings.