Common myths about appraising
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-supported transactions. Also by law, you are allowed to receive a copy of the completed appraisal report from your lending agency. Contact Young Appraisal Company, Inc. if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser must be the same as the market value.
Fact: While most states back the suggestion that assessed value equates estimated market value, this usually is not the case. Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when properties in the area have not been reassessed for an prolonged period.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the opinion of value of the house will vary.
Fact: The appraiser has no personal interest in the outcome of the appraisal report and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value will approximate replacement cost.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific house, with neither being under undue influence to buy or sell. If the home were reconstructed, the dollar amount required to do so would make up the replacement cost.
Myth: Certain methods, like the price per square foot, are the methods appraisers use to arrive at the price of a home.
Fact: There are many varied processes that an appraiser will use to make a comprehensive investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to certain facilities and the cost of recently sold comparable properties.
Myth: In a robust economy - when the costs of homes in a given neighborhood are reported to be appreciating by a particular percentage - the worth of individual houses in the vicinity can be expected to rise by that same percentage.
Fact: Any price at which an appraiser arrives concerning a certain home is always personalized, based on certain factors derived from the data of comparable properties and other considerations within the house itself. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Tarrant County or North Richland Hills, TX?Contact Young Appraisal Company, Inc.
Myth: Just examining what the home looks like on its exterior gives an idea of its value.
Fact: Home value is concluded by a multitude of variables, including area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found simply by viewing the house from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. Consumers have to be given a version of the appraisal report through request as per the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the needs of their lending agency.
Fact: It is very important for home buyers to look at a copy of their appraisal report so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing an incredible amount of 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: Appraisers are hired only to assess house values in home sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal report. An appraiser forms an opinion of value in the appraisal process and resulting appraisal report. House inspectors will produce a report that will show the condition of the property and its major components and possible damage.