Common myths about appraising
By law, an appraiser must be state-licensed to produce appraisals for federally-supported sales. You are also entitled by law to request a copy of the completed report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value will always be equal to market value.
Fact: It could be that North Carolina, like most states, supports the common myth that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby properties are prime examples of why there might be a differential in price.
Myth: The buyer or the seller can have impact in the value of the home depending upon for whom the appraiser is working.
Fact: There is no vested interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is created.
Myth: The replacement cost of the property will be is on par with the market value.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a home without being under duress from any external party to buy or sell. The dollar amount demanded to reconstruct a home is what constitutes the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the cost of a home.
Fact: There are many numerous formulae that an appraiser will use to make a detailed analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the cost of recently sold comparable houses.
Myth: In a strong economy - when the worth of houses in a given county are found to be rising by a certain percentage - the worth of individual houses in the proximity can be expected to increase by that same percentage.
Fact: All increase of worth is on a case-by-case basis, determined by data on relevant considerations and the data of comparable properties. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact our professional staff
Myth: You can usually see what a property is worth simply by looking at the outside.
Fact: There are a multitude of different factors that determine the value of a house; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data needed.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the document. Consumers have to be provided with a copy of the report through request as per the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the necessities of their lender.
Fact: A consumer should definitely read through their document; there may be some questions or some concerns with the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable 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 order an appraisal unless you are trying to get an estimate of the price of a house during a sales transaction involving a lending company.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. The purpose of a home inspector is to approximate the condition of the house and its main components, then provide a report on these inspection.