Appraisal myths debunked

Legally, an appraiser needs to be state certified to produce legitimate real estate appraisals for federally-related transactions. The law gives you the right to acquire a copy of your completed appraisal report from your lender after it has been provided. Contact Piscitelli Appraisal Service if you have any questions about the appraisal process.

Myth: The value that is ascertained by the appraiser will be equivalent to the market value.

Fact: It is possible that , like most states, supports the common myth that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when properties in the area have not been reassessed for an extended period.

Myth: The buyer or the seller may have impact in the value of the home depending upon for whom the appraiser is working.

Fact: The appraiser has no vested interest in the outcome of the appraisal and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: Any time market value is established, it should equate to the replacement cost of the home.

Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the house were rebuilt, the dollar amount necessary to do so would set the replacement cost.

Myth: There are certain methods that real estate appraisers use to find the value 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 rely on Piscitelli Appraisal Service's staff to be forthright in assessing this data.

Myth: As properties appreciate by a certain percentage - in a robust economic state - the houses around the appreciating properties are figured to appreciate by the same amount.

Fact: All increase of worth is on an individual basis, concluded by data on relevant considerations and the data of comparable properties. It makes no difference if the economy is robust or terrible.

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Myth: The home's outside is determinate of the actual price of the home; it is unnecessary to do an interior appraisal.

Fact: There are a multitude of different factors that conclude property value; these factors include area, 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 the consumer is the party who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.

Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report. Due the Equal Credit Opportunity Act, any consumer requesting a copy of the appraisal report must be provided with one by their lender.

Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the necessities of their lending company.

Fact: It is a very good idea for home buyers to look at a copy of their appraisal so that they can verify the accuracy of the report, in case they need to question its veracity. 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, since it contains an incredible amount of data - 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 area.

Myth: Appraisals are ordered only to assess real estate property values in home sales involving mortgage-lending transactions.

Fact: Appraisers can have many different qualifications and designations which allow them to perform a lot of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: You don't have to get an appraisal if you order a home inspection.

Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report. House inspectors will compose a report that will express the condition of the house and its major components and possible damage.