Appraisal myths debunked

Legally, a real estate appraiser has to be state certified to produce legitimate real estate appraisals for federally-backed purchase. You have the ability to receive a copy of the completed appraisal from your lender. Contact The Welter Appraisal Group if you have any questions about the appraisal process.

Myth: The value that is assessed by the appraiser will be equivalent to the market value.

Fact: While most states uphold the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby homes are prime examples of why the price can vary.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the cost of the house will vary.

Fact: The cost of the house does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the worth of the house. What this means is he will render business with impartiality and independence regardless for whom the appraisal is provided.

Myth: The replacement cost of the property is always is on par with the market value.

Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a house without being under influence from any outside group to buy or sell. Replacement cost is the dollar amount needed to rebuild a home in-kind.

Myth: There are certain ways that appraisers use to find the opinion of value of a property, such as the price per square foot.

Fact: There are many differing formulae that an appraiser will use to make a detailed investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the opinion of value of recently sold comparable houses.

Myth: In a powerful economy - when the values of houses in a given county are reported to be increasing by a particular percentage - the costs of individual properties in the vicinity can be expected to increase by that same percentage.

Fact: Any price at which an appraiser concludes concerning a certain home is always personalized, based on certain factors derived from the information of comparable houses and other considerations within the property itself. It doesn't matter if the economy is doing well or declining.

Myth: The home's exterior is determinate of the actual value of the house; there is no need to do an interior appraisal.

Fact: There are a multitude of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the data necessary.

Myth: Since you're the one providing the money for the appraisal when applying for the loan to purchase or refinance real estate, you own the ordered appraisal.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with one by their lender.

Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the necessities of their lender.

Fact: Only if consumers look at a copy of their appraisal report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, since it contains an exorbitant amount of information - 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.