Common myths about appraising
By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-backed purchases. Also by law, you have the right to request a copy of the finished appraisal report from your lender. Contact Weaver Appraisal Group if you have any concerns about the appraisal process.
Myth: Assessed value will always be similar to to market value.
Fact: It is probable that North Carolina, like most states, validates the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: The appraised value of a house will be different depending upon if the appraisal is ordered for the buyer or the seller.
Fact: The price of the property does not affect the pay of the appraiser; due to this, the appraiser has no personal interest in the value of the property. This means that he will conduct job with impartiality and independence regardless for whom the appraisal is produced.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. The replacement cost is the dollar amount required to rebuild a property in-kind.
Myth: There are specific ways that appraisers use to determine the value of a property, such as the price per square foot.
Fact: There are many different calculations that an appraiser will use to make an in-depth analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable houses.
Myth: In a strong economy - when the values of houses in a given region are reported to be appreciating by a particular percentage - the worth of individual houses in the vicinity can be expected to rise by that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors derived from the information of comparable houses and other specifications within the property itself. This is true in good economic times as well as poor.
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Myth: Just seeing what the house looks like on its exterior gives an excellent idea of its value.
Fact: There are a number of different factors that determine the value of a house; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by viewing the house from the outside.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal report. However, consumers must be provided with a copy of the document upon written request, due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal report so long as it satisfies the needs of their lending agency.
Fact: Only if consumers look over a copy of their report can they ensure 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 an invaluable 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending company.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform 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 has a completely different purpose than an appraisal report. The point of an appraisal report is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. A home inspector determines the condition of the house and its major components and reports their findings.