Appraisal myths debunked
By law, an appraiser must be state-licensed to offer appraisals for federally-backed purchases. The law entitles you to acquire a copy of your finished appraisal from your lending agency after it has been provided. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should always be equal to market value.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Columbia have not been reassessed for quite a while, it may vary wildly.
Myth: The appraised value of a home will vary depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: Market value should equal replacement cost.
Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific home. If the house were rebuilt, the dollar amount needed to do so would be the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to arrive at the cost of a property.
Fact: Appraisers complete a detailed analysis of all factors in consideration to the value of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a powerful economy - when the worth of houses in a given neighborhood are reported to be increasing by a particular percentage - the costs of individual houses in the vicinity can be expected to increase by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, concluded by data on relevant conditions and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Howard County or Columbia, MD?Contact Astute Appraisals, Inc.
Myth: Just seeing what the home looks like on the outside gives an idea of its cost.
Fact: Property worth is concluded by a number of variables, including - but not limited to - location, 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 appraisal reports when applying for loans to buy or refinance real estate, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. Consumers must be provided with a copy of the document through request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the necessities of their lender.
Fact: A consumer should definitely look through their document; there might be some questions or some concerns about the accuracy of the 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 a valuable record for future reference, containing useful and often-revealing 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.
Myth: Appraisers are hired only to assess house values in house sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is the same as a home inspection report.
Fact: Appraisal reports are definitely not the same as a home inspection report. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. A home inspector assesses the condition of the home and its main components and reports these findings.