Appraisal myths & facts
By law, an appraiser is required to be state-licensed to offer appraisals for federally-supported transactions. You have the ability to receive a copy of the completed appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser is required to be the same as the market value.
Fact: While most states uphold the suggestion that assessed value is equal to estimated market value, this generally is not the case. Sometimes when interior remodeling has been done and the assessor is not aware of the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The opinion of value of a house will differ depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the worth of a home.
Fact: An appraisal report is an amalgamation of information concluded from the home's size, location, proximity to specific facilities, the condition of the house and the price of recent comparable sales. You can depend on Anderson Appraisal, LLC's appraisers to be ethical in assessing this data.
Myth: As homes increase their worth by a specific percentage - in a strong economy - the houses nearby are expected to appreciate by the same amount.
Fact: Cost increase of a specific house must be concluded on an individualized basis, factoring in information on comparable properties and other relevant considerations. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Randall County or Amarillo, TX?Contact us
Myth: You can commonly tell what a house is worth simply by looking at the exterior.
Fact: To conclude an accurate value beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these things can be derived simply by examining the property from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Fact: Legally, the appraisal is owned by the lending company unless the lender releases their interest in the document. However, consumers have to be supplied with a copy of the report upon written request, through the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it meets the requirements of their lending company.
Fact: A consumer should definitely look through their appraisal report; there will probably be some questions or some worries about the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, filled with useful and often-revealing 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 proximity.
Myth: The only reason someone would hire an appraiser is if a house needs its price estimated in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and will provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The job of the appraiser is to conclude an opinion of value in the appraisal process and through creating the report. House inspectors will write a report that will determine the condition of the property and its major components and possible damage.