Appraisal myths debunked

Legally, a real estate appraiser is required to be state certified to produce legitimate appraisal reports for federally-backed purchase. Also by law, you have the right to receive a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal process.

Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.

Fact: It is probable that , like most states, supports the idea that the assessed value is the same as the market value; however, this is not often the case. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby houses are prime examples of why this occurs.

Myth: The appraised value of a house will differ depending upon if the appraisal is ordered for the buyer or the seller.

Fact: There is no real interest on the part of the appraiser in the result of the appraisal, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is created.

Myth: Market value will approximate 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 pressure to buy or sell. The dollar amount required to rebuild a house is what forms the replacement cost.

Myth: There are specific methods that real estate appraisers use to find the value of a property, like the price per square foot.

Fact: An appraisal report is a collection of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can rely on Appraisal Techniques, Inc.'s appraisers to be forthright in assessing this information.

Myth: As houses increase their worth by a certain percentage - in a robust economic state - the homes nearby are figured to appreciate by the same amount.

Fact: All appreciation of value is on a one-on-one basis, concluded by information on relevant considerations and the data of comparable houses. It doesn't matter if the economy is on the rise or declining.

Myth: The home's exterior is determinate of the actual worth of the property; there is no need to do an interior appraisal.

Fact: To conclude an accurate price beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. An outside-only inspection certainly can't provide all of the information necessary.

Myth: Since the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.

Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal. However, consumers must be given a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the requirements of their lending company.

Fact: Only if home buyers read a copy of their appraisal 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. Also, the appraisal report makes an excellent record for future reference, filled with helpful and often-revealing data - including 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.