Common myths about appraising
Legally, a real estate appraiser is required to be state certified to create substantiated appraisal reports for federally-backed purchase. The law entitles you to receive a copy of your completed appraisal report from your lender after it has been provided. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser should be equivalent to the market value.
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. Generally when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the Columbia have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller will have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The price of the house does not affect the pay of the appraiser; as a result, the appraiser has no preconceived interest in the cost of the home. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a specific house, with neither being under duress to buy or sell. Replacement cost is the dollar amount required to rebuild a house in-kind.
Myth: There are certain methods that real estate appraisers use to show the cost of a home, such as the price per square foot.
Fact: An appraisal is an amalgamation of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the home and the price of recent comparable sales. You can count on Astute Appraisals, Inc.'s staff to be honest in assessing this information.
Myth: When the economy is doing well and the worth of properties are reported to be increasing by a certain percentage, the other properties in the proximity can be expected to increase based on that same percentage.
Fact: Any worth at which an appraiser arrives in regards to a particular home is always personalized, based on certain factors derived from the data of comparable houses and other considerations within the house 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 our professional staff
Myth: You can often see what a house is worth simply by looking at the exterior.
Fact: To determine an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply viewing the home from the exterior.
Myth: Because the consumer is the party who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the report. Home buyers must be supplied with a version of the document upon written request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal report so long as it satisfies the requirements of their lending institution.
Fact: Only if consumers look over a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, comprised of 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 area.
Myth: Appraisers are hired only to estimate real estate property 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 provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The reason behind an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal. A home inspector analyzes the condition of the property and its major components and reports these findings.