Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-related transactions. You are also entitled by law to request a copy of the finished appraisal report from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser should be exactly the same as the 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. There are times when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Amarillo have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is written for the buyer or the seller, the value of the home will vary.
Fact: The opinion of value of the home does not affect the payment of the appraiser; due to this, the appraiser has no personal interest in the value of the house. This means that he will complete his business with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Market value will equate to replacement cost.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any external group to buy or sell. The dollar amount needed to reconstruct a home is what forms the replacement cost.
Myth: There are specific methods that real estate appraisers use to find the cost of a home, such as the price per square foot.
Fact: There are many different calculations that an appraiser will use to make a detailed analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable houses.
Myth: As homes increase their worth by a specific percentage - in a robust economic state - the homes within the same neighborhood are expected to appreciate by the same amount.
Fact: All increase of price is on a one-on-one basis, determined by data on relevant elements and the data of comparable houses. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Potter County or Amarillo, Texas?Contact us
Myth: You can generally see what a house is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply viewing the house from the exterior.
Myth: Because the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be given it by their lending company.
Myth: There's no reason for consumers to even concern themselves with what the report contains so long as their lending institution is satisfied.
Fact: A consumer should definitely read through their report; there will probably 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 an incredible amount of data stored in an appraisal report that should 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-based sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series 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: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. The purpose of a home inspector is to find the condition of the house and its main components, then compose a report on their conclusions.