Common myths about appraising

It is enforced by the government that an appraiser must be state-licensed to write appraisals for federally-related property purchases in California. The law allows you to acquire a copy of your completed appraisal from your lending agency after it has been provided. Contact us if you have any questions about the appraisal procedure.

Myth: Market value has to be equivocal to the assessed value of the property.

Fact: While most states back the concept that assessed value is equal to estimated market value, this often is not the case. Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when homes in the vicinity have not been reassessed for an extended time.

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

Fact: The appraiser has no vested interest in the result of the appraisal and should conduct his task 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: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home. If the home were reconstructed, the dollar amount necessary to do so would form the replacement cost.

Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a home.

Fact: Appraisers complete a full analysis of all factors pertaining to the value of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.

Myth: In a strong economy - when the prices of houses in a given neighborhood are found to be appreciating by a particular percentage - the prices of individual houses in the proximity can be expected to rise by that same percentage.

Fact: All increase of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable homes. This is true in strong economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Ventura County or Oak Park, CA?

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Myth: The house's outside is determinate of the actual worth of the house; it is unnecessary to do an interior inspection.

Fact: There are a number of different factors that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply looking at the house from the outside.

Myth: Because the consumer is the party who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.

Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the appraisal. Home buyers must be provided with a version of the document upon written request as per the Equal Credit Opportunity Act.

Myth: There's no point for home buyers to even worry about what the report contains so long as their lending company is satisfied.

Fact: It is a very good idea for consumers to look at a copy of their report so that they can double-check the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, filled with helpful and often-revealing information - 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 vicinity.

Myth: The only reason someone would order an appraisal is if a home needs its value estimated in a lender 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 variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: A house inspection serves the same purpose as an appraisal.

Fact: Appraisal reports are definitely not the same as a home inspection. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will express the condition of the property and its major components and possible damage.