Appraisal myths debunked
It is enforced by legal agencies that a real estate appraiser needs to be state-licensed to write appraisal reports for federally-related real estate purchases in North Carolina. You are also entitled by law to acquire a copy of the finished appraisal report from your lending agency. Contact Weaver Appraisal Group if you have any questions about the appraisal procedure.
Myth: Assessed value will always equate to market value.
Fact: It is probable that North Carolina, like most states, validates the common myth that the assessed value equals the market value; however, this is not always true. At times when interior remodeling has been done and the assessor is not aware of the improvement or properties in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The opinion of value of a home will vary depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: The appraiser has no personal interest in the outcome of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the home 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 house without being under duress from any outside group to buy or sell. If the home were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the cost of a property.
Fact: An appraisal report is an assertion of data based on 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 Weaver Appraisal Group's appraisers to be forthright in assessing this information.
Myth: In a robust economy - when the sales prices of houses in a given neighborhood are found to be rising by a certain percentage - the costs of individual houses in the area can be expected to appreciate by that same percentage.
Fact: Any worth at which an appraiser arrives concerning a specific home is always individualized, based on certain factors found from the data of comparable properties and other specifications within the house itself. It makes no difference if the economy is robust or poor.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact Weaver Appraisal Group
Myth: The property's exterior is determinate of the actual price of the property; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different factors that determine the value of a house; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by viewing the home from the exterior.
Myth: Because the consumer is the one who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Legally, the appraisal is owned by the lender unless the lender relinquishes their interest in the document. By the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be provided with one by their lender.
Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the needs of their lending agency.
Fact: A home buyer should definitely read through their appraisal report; there will probably be some questions or some worries about the accuracy of the 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 near perfect record for future reference, containing helpful 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: Appraisals are ordered only to estimate real estate property values in property sales involving mortgage-lending transactions.
Fact: Appraisers can have many varied 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: A house inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection report. The appraiser finds an opinion of value in the appraisal process and resulting appraisal report. A home inspector analyzes the condition of the home and its major components and reports these findings.