Common myths about appraising

By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-supported transactions. You also have the right to demand a copy of the completed report from your lending agency. Contact Community Appraisal if you have any questions about the appraisal procedure.

Myth: Market value will be similar to the assessed value of the property.

Fact: While most states support the concept that assessed value is the same as estimated market value, this often is not the case. Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an extended time.

Myth: Depending on whether the appraisal is provided for the buyer or the seller, the cost of the home will vary.

Fact: The appraised value of the property does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the cost of the home. This means that he will provide job with impartiality and independence regardless for whom the appraisal is conducted.

Myth: Market value will equate to replacement cost.

Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under duress to buy or sell. If the property were rebuilt, the dollar amount required to do so would be the replacement cost.

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

Fact: An appraisal is an assertion of data based on the house's size, location, proximity to some facilities, the condition of the house and the worth of recent comparable sales. You can count on Community Appraisal's appraisers to be forthright in assessing this information.

Myth: As houses appreciate by a specific percentage - in a robust economic state - the houses in proximity are expected to increase by the same amount.

Fact: All increase of value is on an individual basis, concluded by data on relevant considerations and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.

Myth: You can commonly find what a house is worth simply by looking at the outside.

Fact: There are a multitude of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by looking at the property from the exterior.

Myth: Since you're the one providing the money for the appraisal report when applying for the loan to purchase or refinance your home, you own the produced appraisal.

Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal. Home buyers have to be supplied with a copy of the document through request due to the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the report so long as it meets the needs of their lending company.

Fact: It is a very good idea for home buyers to peruse a copy of their report so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, containing a great deal 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 area.