Appraisal myths & facts
It is enforced by law that an appraiser is required to be state-licensed to perform appraisals for federally-related home purchases in Maryland. Also by law, you have the right to demand a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value should be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Often when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller will have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: The value of the home does not affect the salary of the appraiser; due to this, the appraiser has no pressured interest in the opinion of value of the property. This means that he will provide services with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is found, it should be similar to the replacement cost of the home.
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 specific property. Replacement cost is the dollar amount required to rebuild a house in-kind.
Myth: Specific formulae, like the price per square foot, are the methods appraisers use to arrive at the value of a home.
Fact: An appraisal is an amalgamation of data concluded from the property's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can rely on Astute Appraisals, Inc.'s staff to be honest in assessing this information.
Myth: In a robust economy - when the costs of homes in a given region are reported to be appreciating by a particular percentage - the prices of individual homes in the vicinity can be expected to increase by that same percentage.
Fact: Any value at which an appraiser arrives concerning a particular house is always personalized, based on certain factors found from the data of comparable houses and other considerations 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 Howard County or Columbia, MD?Contact us
Myth: The home's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Fact: Home value is concluded by a number of variables, including location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by examining the home from the exterior.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their property, they own their appraisal report.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the appraisal. Consumers have to be provided with a version of the document through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it satisfies the requirements of their lending agency.
Fact: A home buyer should definitely inspect their appraisal report; there might be some questions or some worries about the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, containing an exorbitant 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 vicinity.
Myth: Appraisers are hired only to estimate building values in home sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of requirements 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: You shouldn't need to get an appraisal if you get a home inspection.
Fact: Appraisal reports are definitely not the same as a home inspection. The task of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. House inspectors will create a report that will determine the condition of the house and its major components and possible damage.