Appraisal myths debunked

It is mandated by law that a real estate appraiser is required to be state-licensed to create appraisals for federally-related property purchases in North Carolina. The law entitles you to receive a copy of your completed appraisal from your lending agency after it has been produced. Contact us if you have any questions about the appraisal procedure.

Myth: The value that is ascertained by the appraiser must be exactly the same as the market value.

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the Butner have not been reassessed for a good length of time, it may vary wildly.

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the opinion of value of the property will vary.

Fact: The value of the house does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the property. What this means is he will provide task with impartiality and independence regardless for whom the appraisal is provided.

Myth: Market value should approximate replacement cost.

Fact: Without any pressure from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. Replacement cost is the dollar amount required to reconstruct a home in-kind.

Myth: There are specific ways that appraisers use to find the cost of a property, like the price per square foot.

Fact: There are many different 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 value of recently sold comparable properties.

Myth: As houses appreciate by a specific percentage - in a strong economy - the properties around the appreciating properties are figured to increase by the same amount.

Fact: Any cost at which an appraiser arrives concerning a specific house is always individualized, based on certain factors concluded from the data of comparable homes and other specifications within the house itself. This is true in strong economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?

Contact Weaver Appraisal Group

Myth: Just looking at what the house looks like on its exterior gives a good idea of its cost.

Fact: There are a number of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the information needed.

Myth: Since the consumer is the person who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.

Fact: Legally, the document is owned by the lender unless the lender releases their interest in the document. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with one by their lending agency.

Myth: Home buyers need not worry about what is in their appraisal document so long as it meets the requirements of their lending company.

Fact: Only if consumers read 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. An report can serve as a record for the future, containing an incredible amount of information - 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 worth of a property during a sales transaction involving a lender.

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

Myth: You don't have to get an appraisal if you order a home inspection.

Fact: An appraisal does not serve the same purpose as an inspection. An appraiser concludes on an opinion of value in the appraisal process and resulting report. House inspectors will create a report that will explain the condition of the house and its major components and possible damage.