Common myths about appraising
Legally, an appraiser needs to be state certified to write substantiated appraisal reports for federally-supported sales. The law allows you to acquire a copy of your finished report from your lending agency after it has been produced. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value will always equate to market value.
Fact: It is possible that North Carolina, like most states, validates the suggestion that the assessed value equals the market value; however, this is not always true. Sometimes when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the area have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller will have leverage in the value of the house depending upon for whom the appraiser is working.
Fact: The appraised value of the house does not affect the salary of the appraiser; as such, the appraiser has no preconceived interest in the opinion of value of the property. This means that he will complete his services with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: The replacement value of the property is always is on par with the market value.
Fact: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house. The dollar amount demanded to rebuild a house is what shows the replacement cost.
Myth: Specific formulae, like the price per square foot of the property, are the ways appraisers use to ascertain the price of a property.
Fact: An appraisal report is a collection of information based on the property's size, location, proximity to some facilities, the condition of the property and the price of recent comparable sales. You can rely on Weaver Appraisal Group's appraisers to be ethical in assessing this data.
Myth: As homes increase their worth by a specific percentage - in a strong economy - the properties in proximity are expected to increase by the same amount.
Fact: Any value at which an appraiser arrives concerning a particular home is always personalized, based on certain factors pulled from the data of comparable properties and other considerations within the house itself. This is true in excellent economic times as well as bad.
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Myth: Just seeing what the house looks like on its exterior gives an idea of its value.
Fact: There are a multitude of different variables that determine property value; these factors include location, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the information required.
Myth: Since the consumer is the one who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal. However, home buyers have to be supplied with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal so long as it meets the necessities of their lending institution.
Fact: It is almost imperative for home buyers to look at a copy of their report so that they can double-check the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an appraisal that will probably 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: Appraisers are hired only to assess home values in property sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and do perform a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is the same as a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. The appraiser decides upon an opinion of value in the appraisal process and resulting document. The task of a home inspector is to assess the condition of the property and its main components, then create a report on their inspection.