Appraisal myths & facts
It is required by law that a real estate appraiser is required to be state-licensed to write appraisal reports for federally-supported real estate sales in Texas. You also have the right to demand a copy of the completed appraisal from your lending agency. Contact Anderson Appraisal, LLC if you have any questions about the appraisal process.
Myth: Assessed value generally will be similar to to market value.
Fact: While most states back the suggestion that assessed value is equal to estimated market value, this often is not the case. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Amarillo have not been reassessed for quite some time, it may vary wildly.
Myth: Depending on whether the appraisal is done for the buyer or the seller, the opinion of value of the house will vary.
Fact: The price of the house does not affect the salary of the appraiser; as such, the appraiser has no personal interest in the opinion of value of the home. Obviously, he will provide business with impartiality and independence regardless for whom the appraisal is produced.
Myth: Market value will equate to replacement cost.
Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under duress to buy or sell. Replacement cost is the dollar amount required to rebuild a home in-kind.
Myth: Appraisers use a formula, like a certain price per square foot, to come to the value of a property.
Fact: There are many varied formulae that an appraiser will use to make a detailed analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable houses.
Myth: When the economy is robust and the value of houses are found to be appreciating by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.
Fact: All appreciation of value is on a one-on-one basis, determined by information on relevant elements and the data of comparable homes. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Potter County or Amarillo, Texas?Contact Anderson Appraisal, LLC
Myth: The house's outside is determinate of the actual value of the property; it is unnecessary to do an interior appraisal.
Fact: There are a number of different variables that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found just by examining the house from the outside.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your home, you own the provided appraisal.
Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the report. Consumers have to be provided with a version of the report through request due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their document so long as it satisfies the requirements of their lending agency.
Fact: It is almost imperative for home buyers to check over a copy of their appraisal report so that they can verify the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, comprised of useful and often-revealing data - including 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 vicinity.
Myth: Appraisers are hired only to estimate building values in house sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't need to get an appraisal if you order a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal report. The purpose of an appraisal is to form an opinion of fair market value during the appraisal process and the production of the appraisal report. House inspectors will compose a report that will determine the condition of the house and its major components and possible damage.