Appraisal myths debunked

It is mandated by legal agencies that a real estate appraiser must be state-licensed to create appraisals for federally-supported real estate transactions in . You have the ability to request a copy of the finished report from your lender. Contact Piscitelli Appraisal Service if you have any questions about the appraisal process.

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

Fact: It might be that , like most states, validates the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged time.

Myth: The appraised value of a house will vary depending upon if the appraisal is produced for the buyer or the seller.

Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is conducted.

Myth: Market value will equate to replacement cost.

Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell. If the property were reconstructed, the dollar amount required to do so would set the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the worth of a property.

Fact: There are many varied methods that an appraiser will use to make a comprehensive analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable homes.

Myth: In a robust economy - when the sales prices of homes in a given neighborhood are reported to be appreciating by a particular percentage - the worth of individual houses in the proximity can be expected to appreciate by that same percentage.

Fact: Worth appreciation of a specific property has to be determined on a case-by-case basis, factoring in information on comparable homes and other relevant specifications within the property itself. It doesn't matter if the economy is doing well or declining.

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

Fact: To find an accurate value beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from just viewing the property from the exterior.

Myth: Because the consumer is the one who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.

Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with it by their lender.

Myth: It doesn't concern consumers what's in the report so long as it satisfies the requirements of their lender.

Fact: A home buyer should definitely inspect their appraisal report; there will probably be some questions or some worries with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an excellent record for future reference, comprised of useful and often-revealing 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 proximity.

Myth: The only reason someone would order an appraisal is if a house needs its price assessed in a lender-based sales transaction.

Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: An appraisal is no different than a home inspection.

Fact: An appraisal does not fulfill the same purpose as an inspection report. The appraiser concludes on 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.