Appraisal myths & facts

Legally, an appraiser is required to be state certified to perform substantiated real estate appraisals for federally-backed sales. You have the ability to acquire a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal procedure.

Myth: Market value needs to be the same as the assessed value of the property.

Fact: It is possible that , like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not often the case. Usually when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the area have not been reassessed for years or more, it may vary wildly.

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

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

Myth: Market value should equate to replacement cost.

Fact: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular property. Replacement cost is the dollar amount necessary to rebuild a house in-kind.

Myth: There are specific methods that real estate appraisers use to find the opinion of value of a property, like the price per square foot.

Fact: An appraisal is an assertion of data based on the house's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can rely on Piscitelli Appraisal Service's appraisers to be forthright in assessing this information.

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

Fact: All appreciation of price is on an individual basis, concluded by data on relevant conditions and the data of comparable properties. This is true in good economic times as well as bad.

Myth: You can generally tell what a home is worth simply by looking at the exterior.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. An exterior inspection certainly can't provide all of the information required.

Myth: Since you're the one providing the money for the appraisal report when applying for the loan to purchase or refinance your home, you own the provided appraisal.

Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given one by their lending agency.

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

Fact: A home buyer should definitely look through their document; there will probably be some questions or some concerns with the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, filled with useful and often-revealing data - 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.