Common myths about appraising
By law, an appraiser is required to be state-licensed to offer appraisals for federally-supported sales. The law gives you the right to get a copy of your completed appraisal from your lender after it has been produced. Contact Furr Appraisal Service if you have any concerns about the appraisal process.
Myth: Assessed value should always equate to market value.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an prolonged time.
Myth: The buyer or the seller will have some pull in the cost of the home depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is created.
Myth: The replacement cost of the home should be is on par with the market value.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. Replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: Specific formulae, such as the price per square foot of the property, are the methods appraisers use to come to the value of a property.
Fact: There are many differing calculations that an appraiser will use to make an in-depth investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable properties.
Myth: When the economy is strong and the value of houses are reported to be rising by a certain percentage, the other houses in the neighborhood can be expected to increase based on that same percentage.
Fact: Worth increase of a certain property must be concluded on a case-by-case basis, factoring in data on comparable houses and other relevant specifications within the house itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Benton County or Camden, TN?Contact Furr Appraisal Service
Myth: You can commonly tell what a home 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 area, condition, improvements, amenities, and current market trends. As you can see, none of these things can be found simply by viewing the property from the exterior.
Myth: Because the consumer is the person who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the report. Consumers must be provided with a version of the report through request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal document so long as it exceeds the necessities of their lending company.
Fact: A home buyer should definitely look through their appraisal; there could be some questions or some worries with 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. An appraisal report can double as a record for the future, containing a great deal of 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 area.
Myth: Appraisals are ordered only to assess real estate property values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a multitude 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.
Fact: Appraisal reports are definitely not the same as a home inspection report. The point of an appraisal is to form an opinion of fair market value during the appraisal process and the production of the appraisal report. The point of a home inspector is to assess the condition of the home and its main components, then produce a report on their inspection.