Common myths about appraising

Legally, a real estate appraiser has to be state certified to produce legitimate real estate appraisals for federally-supported sales. You have the ability to request a copy of the finished appraisal from your lender. Contact Piscitelli Appraisal Service if you have any concerns about the appraisal procedure.

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

Fact: It might be that , like most states, validates the common myth that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when houses in the area have not been reassessed for an prolonged period of time.

Myth: The buyer or the seller will have some pull in the cost of the house depending upon for whom the appraiser is working.

Fact: The value of the house does not affect the payment of the appraiser; because of this, the appraiser has no personal interest in the opinion of value of the property. What this means is he will conduct job with impartiality and independence regardless for whom the appraisal is created.

Myth: Any time market value is established, it should be the same as the replacement cost of the house.

Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the property were reconstructed, the dollar amount required to do so would be the replacement cost.

Myth: There are certain methods that real estate appraisers use to show the cost of a property, like the price per square foot.

Fact: Appraisers make a comprehensive analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.

Myth: When the economy is robust and the cost of homes are reported to be appreciating by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.

Fact: Any value at which an appraiser concludes in regards to a specific home is always personalized, based on certain factors concluded from the information of comparable houses and other specifications within the home itself. It makes no difference whether the economy is powerful or bad.

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

Fact: Property worth is determined by a multitude of variables, including area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data required.

Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal.

Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. Home buyers have to be given a version of the appraisal report upon written request because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the needs of their lending agency.

Fact: It is almost imperative for home buyers to read a copy of their appraisal report so that they can double-check the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a valuable record for future reference, containing helpful and often-revealing information - 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.