Appraisal myths debunked

Legally, an appraiser has to be state certified to create substantiated appraisal reports for federally-backed transactions. The law entitles you to receive a copy of your completed appraisal from your lender after it has been produced. Contact our professional staff if you have any questions about the appraisal process.

Myth: The value that is ascertained by the appraiser should be the same as the market value.

Fact: While most states uphold the suggestion that assessed value approximates estimated market value, this usually is not the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby properties are exact examples of why this occurs.

Myth: Depending on whether the appraisal is done for the buyer or the seller, the appraised value of the property will vary.

Fact: There is no vested interest on the part of the appraiser in the outcome of the appraisal, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is created.

Myth: The replacement cost of the home will be is on par with the market value.

Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the property were rebuilt, the dollar amount needed to do so would be the replacement cost.

Myth: Appraisers use a calculation, such as a specific price per square foot, to conclude the worth of a house.

Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the price of recent comparable sales. You can count on Crescent Appraisal Group, Inc.'s staff to be forthright in assessing this data.

Myth: When the economy is doing well and the cost of homes are found to be appreciating by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.

Fact: Cost appreciation of a specific property has to be concluded on an individualized basis, factoring in information on comparable houses and other relevant specifications within the property itself. It doesn't matter if the economy is on the rise or declining.

Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?

Contact Crescent Appraisal Group, Inc.

Myth: The property's outside is determinate of the actual price of the home; there is no need to do an interior inspection.

Fact: There are a number of different factors that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply examining the property from the exterior.

Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their property, they legally own their appraisal report.

Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. Home buyers must be given a copy of the document upon written request due to the Equal Credit Opportunity Act.

Myth: There's no need for home buyers to even worry about what the appraisal report contains so long as their lending agency is fine with the contents therein.

Fact: A home buyer should definitely look through their appraisal report; there may be some questions or some concerns with the accuracy of the appraisal report that need to 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 useful 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 proximity.

Myth: The only reason someone would order an appraisal is if a home needs its value assessed in a lender-based sales transaction.

Fact: Based upon their qualifications and designations, appraisers can and may perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: There's no need to get an appraisal if you order a home inspection.

Fact: Appraisal reports are definitely not the same as a home inspection. An appraiser concludes on an opinion of value in the appraisal process and resulting document. A home inspector assesses the condition of the building and its main components and reports their findings.