Common myths about appraising
Legally, an appraiser has to be state certified to write legitimate appraisal reports for federally-backed purchase. The law allows you to acquire a copy of your completed appraisal from your lending agency after it has been produced. Contact us if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Fact: While most states support the concept that assessed value is equal to estimated market value, this often is not the case. Usually when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the appraised value of the house will vary.
Fact: The opinion of value of the property does not affect the pay of the appraiser; as a result, the appraiser has no personal interest in the opinion of value of the home. This means that he will provide job with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the house should be is on par with the market value.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a certain property, with neither being under duress to buy or sell. Replacement value is the dollar amount required to rebuild a home in-kind.
Myth: There are certain methods that real estate appraisers use to determine the opinion of value of a property, like the price per square foot.
Fact: An appraisal is an amalgamation of information concluded from the home's size, location, proximity to certain facilities, the condition of the house and the price of recent comparable sales. You can depend on Astute Appraisals, Inc.'s staff to be honest in assessing this data.
Myth: In a powerful economy - when the sales prices of homes in a given county are found to be rising by a certain percentage - the costs of individual homes in the area can be expected to rise by that same percentage.
Fact: All appreciation of worth is on an individual basis, determined by data on relevant conditions and the data of comparable homes. It makes no difference whether the economy is good or on the decline.
Have other questions about appraisers, appraising or real estate in Howard County or Columbia, MD?Contact our professional staff
Myth: You can usually tell what a house is worth simply by looking at the exterior.
Fact: There are a multitude of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just looking at the house from the outside.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report. Consumers must be supplied with a version of the document upon written request as per the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the necessities of their lender.
Fact: Only if home buyers read a copy of their appraisal can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data contained in an report that could 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a home needs its cost estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude 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: A home inspection report has a completely different purpose than an appraisal. The purpose of the appraiser is to find an opinion of value in the appraisal process and through creating the report. The purpose of a home inspector is to determine the condition of the home and its main components, then provide a report on their conclusions.