Appraisal myths debunked
Legally, a real estate appraiser is required to be state certified to produce legitimate real estate appraisals for federally-backed purchase. Also by law, you are entitled to request a copy of the completed appraisal report from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value has to be similar to the assessed value of the property.
Fact: While most states uphold the concept that assessed value is the same as estimated market value, this often is not the case. Generally when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller sometimes may have an influence in the cost of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the appraisal and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement value of the property will be is on par with the market value.
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 rebuilt, the dollar amount necessary to do so would set the replacement cost.
Myth: There are certain methods that appraisers use to determine the cost of a house, like the price per square foot.
Fact: An appraisal report is an assertion of data based on the house's size, location, proximity to undesirable facilities, the condition of the home and the value of recent comparable sales. You can depend on Piscitelli Appraisal Service's appraisers to be honest in assessing this information.
Myth: As houses increase their worth by a certain percentage - in a robust economic state - the properties nearby are figured to increase by the same amount.
Fact: Any price at which an appraiser arrives in regards to a particular house is always personalized, based on certain factors pulled from the data of comparable properties and other specifications within the property itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Ventura County or Oak Park, CA?Contact us
Myth: Just examining what the house looks like on its exterior gives an idea of its value.
Fact: There are a multitude of different variables that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the data needed.
Myth: Considering that the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal. However, consumers have to be provided with a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even care about what the appraisal contains so long as their lender is fine with the contents therein.
Fact: Only if home buyers check out a copy of their report can they verify 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 can double as a record for the future, as it contains an incredible amount of information - 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 order an appraisal unless you are trying to get an assessment of the cost of a property during a sales transaction involving a lender.
Fact: Ordering an appraisal can fulfill a variety of requirements 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: You don't need to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The task of the appraiser is to form an opinion of value in the appraisal process and through creating the report. The task of a home inspector is to find the condition of the property and its main components, then produce a report on their findings.