Common myths about appraising

By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-related sales. You have the ability to acquire a copy of the finished appraisal from your lending agency. Contact us if you have any concerns about the appraisal procedure.

Myth: Market value has to be the same as the assessed value of the property.

Fact: While most states support the concept that assessed value is the same as estimated market value, this generally is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an extended period.

Myth: The appraised value of a house will differ depending upon whether the appraisal is provided for the buyer or the seller.

Fact: There is no personal interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is ordered.

Myth: Any time market value is established, it should be similar to the replacement cost of the house.

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 particular house. The dollar amount needed to rebuild a property is what forms the replacement cost.

Myth: Specific methods, like the price per square foot of the property, are the methods appraisers use to determine the worth of a property.

Fact: An appraisal report is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the home and the value of recent comparable sales. You can depend on Anderson Appraisal, LLC's appraisers to be forthright in assessing this information.

Myth: When the economy is strong and the cost of houses are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to rise based on that same percentage.

Fact: All appreciation of value is on an individual basis, found by information on relevant elements and the data of comparable properties. It doesn't matter if the economy is doing well or declining.

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Myth: You can usually tell what a property is worth simply by looking at the outside.

Fact: Home worth is determined by a number of variables, including location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just examining the property from the outside.

Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to buy or refinance real estate, you own the ordered appraisal.

Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Home buyers have to be given a version of the document through request because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the needs of their lending company.

Fact: A home buyer should definitely inspect their document; there could be some questions or some worries with the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an report that can 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: The only reason someone would hire an appraiser is if a house needs its value assessed in a lender sales transaction.

Fact: Based upon their qualifications and designations, appraisers can and will provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: A house inspection serves the same purpose as an appraisal.

Fact: A home inspection report has a completely different purpose than an appraisal report. An appraiser forms an opinion of value in the appraisal process and resulting appraisal report. A home inspector assesses the condition of the building and its main components and reports these findings.