Appraisal myths debunked
Legally, an appraiser must be state certified to perform legitimate appraisal reports for federally-supported sales. The law gives you the right to receive a copy of your completed 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 will be exactly the same as the market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when homes in the vicinity have not been reassessed for an extended period.
Myth: The buyer or the seller may have an influence in the value of the house depending upon for whom the appraiser is working.
Fact: The cost of the home does not affect the salary of the appraiser; as a result, the appraiser has no preconceived interest in the value of the home. This means that he will conduct job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is found, it should equal the replacement cost of the home.
Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a certain house, with neither being under pressure to buy or sell. If the house were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to conclude the cost of a home.
Fact: An appraisal report is a collection of data based on the property's size, location, proximity to specific facilities, the condition of the property and the worth of recent comparable sales. You can count on Central Arizona Appraisers's appraisers to be honest in assessing this information.
Myth: When the economy is robust and the cost of homes are found to be rising by a certain percentage, the other properties in the area can be expected to rise based on that same percentage.
Fact: Any cost at which an appraiser concludes in regards to a particular property is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the house itself. It makes no difference if the economy is robust or poor.
Have other questions about appraisers, appraising or real estate in Monterey County or Phoenix, AZ?Contact our professional staff
Myth: You can commonly tell what a house is worth simply by looking at the outside.
Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply examining the home from the exterior.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal report.
Fact: Legally, the appraisal is owned by the lending company unless the lender releases their interest in the report. Consumers must be given a version of the document upon written request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal report so long as it satisfies the needs of their lending group.
Fact: Only if consumers read a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, as it contains an incredible amount of data - including, but certainly 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a home during a sales transaction involving a lending company.
Fact: Ordering an appraisal can fulfill a variety of requirements 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: An appraisal report is no different than a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The appraiser finds an opinion of value in the appraisal process and resulting appraisal. A home inspector determines the condition of the house and its main components and reports their findings.