Appraisal myths debunked
By law, an appraiser must be state-licensed to offer appraisals for federally-related sales. Also by law, you have the ability to receive a copy of the completed report from your lender. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value generally will be similar to to market value.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. Usually when interior remodeling has been done and the assessor is unaware of the improvement or properties in the Amarillo have not been reassessed for a good length of time, it may vary wildly.
Myth: The value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The appraiser has no vested interest in the result of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be similar to the replacement cost of the home.
Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the house were rebuilt, the dollar amount necessary to do so would make up the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the cost of a property.
Fact: Appraisers complete a full analysis of all factors pertaining to the price of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.
Myth: In a powerful economy - when the worth of homes in a given county are reported to be appreciating by a certain percentage - the worth of individual properties in the proximity can be expected to appreciate by that same percentage.
Fact: All appreciation of worth is on a case-by-case basis, found by data on relevant elements and the data of comparable homes. It makes no difference if the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Potter County or Amarillo, Texas?Contact us
Myth: The house's outside is determinate of the actual worth of the house; it is unnecessary to do an interior inspection.
Fact: There are a number of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the data needed.
Myth: Considering that the consumer is the person who provides the money 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 report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. However, consumers must be provided with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their report so long as it satisfies the necessities of their lending group.
Fact: It is very important for home buyers to peruse a copy of their appraisal so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data 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 area.
Myth: The only reason someone would order an appraisal is if a home needs its worth estimated in a lender sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and may provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection report. The function of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the production of the appraisal report. The task of a home inspector is to assess the condition of the home and its main components, then provide a report on their findings.