Common myths about appraising
Legally, a real estate appraiser is required to be state certified to create legitimate real estate appraisals for federally-supported purchase. Also by law, you are allowed to demand a copy of the completed report from your lender. Contact Astute Appraisals, Inc. if you have any questions about the appraisal procedure.
Myth: Assessed value will always be the same as to market value.
Fact: It is probable that Maryland, like most states, validates the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended period.
Myth: The appraised value of a house will be different depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the result of the appraisal, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is created.
Myth: The replacement cost of the property will be is on par with the market value.
Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a home without being under pressure from any external party to buy or sell. The replacement cost is the dollar amount required to reconstruct a property in-kind.
Myth: Appraisers use a formula, like a specific price per square foot, to come to the worth of a house.
Fact: Appraisers complete a full analysis of all factors in consideration to the worth of a house, including its location, condition, size, proximity to facilities and recent costs of comparable homes.
Myth: As properties increase their worth by a specific percentage - in a robust economic state - the properties in proximity are expected to appreciate by the same amount.
Fact: Value appreciation of a certain home is always concluded on an individualized basis, factoring in data on comparable properties and other relevant elements. This is true in excellent economic times as well as bad.
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Myth: You can usually see what a house is worth simply by looking at the outside.
Fact: To conclude an accurate value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. Obviously, none of these things can be found simply by viewing the home from the outside.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. Home buyers have to be supplied with a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even worry about what the appraisal report contains so long as their lending institution is satisfied.
Fact: A home buyer should definitely look through their report; there will probably be some questions or some worries 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. There is an incredible amount of information stored in an appraisal that can be useful to the home buyer in the future, such as 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: Hiring an appraiser 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: There's no need to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection report. The reason behind an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will create a report that will explain the condition of the property and its major components and possible damage.