Appraisal myths debunked
Legally, an appraiser is required to be state certified to create substantiated real estate appraisals for federally-supported transactions. The law gives you the right to acquire a copy of your completed report from your lender after it has been produced. Contact our professional staff if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser will be exactly the same as the market value.
Fact: While most states back the suggestion that assessed value approximates estimated market value, this often is not the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are excellent examples of why there might be a differential in price.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the appraised value of the house will vary.
Fact: The cost of the home does not affect the payment of the appraiser; due to this, the appraiser has no preconceived interest in the cost of the home. Obviously, he will provide task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equate to the replacement cost of the property.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under duress to buy or sell. The dollar amount required to reconstruct a home is what forms the replacement cost.
Myth: Certain formulae, like the price per square foot of the property, are what appraisers use to arrive at the cost of a home.
Fact: An appraisal is an assertion of data concluded from the house's size, location, proximity to certain facilities, the condition of the home and the cost of recent comparable sales. You can rely on Desert Sky Appraisers's staff to be professional in assessing this data.
Myth: When the economy is robust and the cost of houses are found to be appreciating by a certain percentage, the other houses in the proximity can be expected to increase based on that same percentage.
Fact: Worth increase of a certain home is always concluded on a case-by-case basis, factoring in information on comparable homes and other relevant considerations. It makes no difference if the economy is strong or bad.
Have other questions about appraisers, appraising or real estate in Maricopa County or Chandler, AZ?Contact our professional staff
Myth: The home's exterior is determinate of the actual price of the property; it is unnecessary to do an interior inspection.
Fact: Home worth is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just inspecting the home from the exterior.
Myth: Considering that the consumer is the person who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Unless a lender releases its interest in the document, it is legally owned by the lending agency that purchased the appraisal. However, home buyers must be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even care about what the report contains so long as their lending institution is fine with the contents therein.
Fact: Only if home buyers read a copy of their appraisal can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a near perfect record for future reference, containing 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 home needs its value assessed in a lender sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a lot of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: A home inspection serves a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting appraisal report. The purpose of a home inspector is to find the condition of the house and its main components, then create a report on their findings.