Appraisal myths & facts
Legally, a real estate appraiser needs to be state certified to write substantiated real estate appraisals for federally-backed transactions. The law allows you to receive a copy of your finished appraisal report from your lender after it has been provided. Contact Weaver Appraisal Group if you have any concerns about the appraisal process.
Myth: Market value will be equivocal to the assessed value of the property.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby homes are excellent examples of why the price can vary.
Myth: The buyer or the seller can have some pull in the cost of the property depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the salary of the appraiser; as a result, the appraiser has no personal interest in the cost of the house. This means that he will complete his job with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Market value should equal replacement cost.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular house, with neither being under undue influence to buy or sell. If the home were rebuilt, the dollar amount necessary to do so would form the replacement cost.
Myth: There are specific ways that appraisers use to show the value of a property, like the price per square foot.
Fact: Appraisers make a detailed analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: When the economy is on the rise and the cost of houses are found to be appreciating by a certain percentage, the other houses in the vicinity can be expected to rise based on that same percentage.
Fact: All increase of value is on a one-on-one basis, concluded by information on relevant considerations and the data of comparable properties. It makes no difference whether the economy is powerful or poor.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact Weaver Appraisal Group
Myth: The house's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior inspection.
Fact: To find an accurate price beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. An exterior inspection definitely can't provide all of the information necessary.
Myth: Considering that the consumer is the one who provides 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: The appraisal is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal report. Consumers must be supplied with a copy of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal document so long as it satisfies the requirements of their lending group.
Fact: A consumer should definitely read through their appraisal report; there may be some questions or some worries about the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information contained in an report 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a home during a sales transaction involving a lending institution.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is the same as a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal report. The function of an appraisal is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. The point of a home inspector is to approximate the condition of the house and its main components, then create a report on their conclusions.