Appraisal myths & facts
Legally, a real estate appraiser is required to be state certified to write substantiated appraisal reports for federally-backed transactions. The law entitles you to get a copy of your finished appraisal report from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be equivalent to the market value.
Fact: While most states support the idea that assessed value equates estimated market value, this often is not the case. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby homes are excellent examples of why the price can vary.
Myth: The buyer or the seller sometimes may have an influence in the cost of the property depending upon for whom the appraiser is working.
Fact: The cost of the house does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the cost of the property. What this means is he will conduct business with impartiality and independence regardless for whom the appraisal is created.
Myth: Market value will be the same as replacement cost.
Fact: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the property were rebuilt, the dollar amount required to do so would make up the replacement cost.
Myth: There are certain methods that real estate appraisers use to show the opinion of value of a home, like the price per square foot.
Fact: Appraisers complete a detailed analysis of all factors in consideration to the cost of a property, including its location, condition, size, proximity to facilities and recent worth of comparable houses.
Myth: When the economy is on the rise and the cost of properties are found to be increasing by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.
Fact: Worth appreciation of a specific home is always concluded on an individualized basis, factoring in information on comparable homes and other relevant considerations. It makes no difference whether 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 property's exterior is determinate of the actual value of the property; there is no need to do an interior appraisal.
Fact: Property value is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found just by examining the property from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their home, they legally own their appraisal report.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. Home buyers have to be provided with a copy of the report through request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the needs of their lending agency.
Fact: It is a very good idea for home buyers to check over a copy of their report so that they can double-check the accuracy of the report, in case there is a need to question its veracity. 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, filled with useful 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 assess home values in home sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The purpose of the appraiser is to find an opinion of value in the appraisal process and through creating the report. The purpose of a home inspector is to determine the condition of the house and its major components, then produce a report on their inspection.