Appraisal myths debunked
It is enforced by law that a real estate appraiser must be state-licensed to create appraisals for federally-supported home purchases in California. The law gives you the right to get a copy of your completed appraisal report from your lending agency after it has been provided. Contact Piscitelli Appraisal Service if you have any questions about the appraisal procedure.
Myth: Assessed value should always be similar to to market value.
Fact: It is possible that California, like most states, supports the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state. Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when houses 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 opinion of value of the house will vary.
Fact: The appraiser has no personal interest in the result of the appraisal and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value will equal replacement cost.
Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house. The replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the ways appraisers use to ascertain the price of a home.
Fact: There are many varied formulae that an appraiser will use to make a detailed investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to specific facilities and the value of recently sold comparable houses.
Myth: When the economy is on the rise and the worth of houses are reported to be rising by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.
Fact: Cost increase of a certain house must be concluded on an individualized basis, factoring in data on comparable houses and other relevant specifications within the house itself. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Ventura County or Oak Park, CA?Contact Piscitelli Appraisal Service
Myth: Just seeing what the home looks like on the outside gives an idea of its worth.
Fact: To find an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply looking at the property from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to purchase or refinance real estate, you own the produced appraisal.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the document. However, home buyers must be given a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their document so long as it meets the necessities of their lending agency.
Fact: It is very important for consumers to go through a copy of their report so that they can verify the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an appraisal that could be useful to the consumer in the future, such as 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 region.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending company.
Fact: Ordering an appraisal can fulfill a variety of requirements 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: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The appraiser finds an opinion of value in the appraisal process and resulting appraisal report. The point of a home inspector is to approximate the condition of the property and its major components, then provide a report on these findings.