Appraisal myths debunked
It is required by law that an appraiser must be state-licensed to offer appraisals for federally-supported home sales in Texas. Also by law, you are entitled to request a copy of the finished appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should always equate to market value.
Fact: This is not often the case; 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 other houses in the Amarillo have not been reassessed for quite a while, it may vary wildly.
Myth: The value of a property will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: There is no vested interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is written.
Myth: Any time market value is established, it should equal the replacement cost of the home.
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 house. The replacement cost is the dollar amount required to rebuild a property in-kind.
Myth: Appraisers use a formula, like a specific price per square foot, to figure out the worth of a house.
Fact: Appraisers make an exhaustive analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent costs of comparable properties.
Myth: As properties appreciate by a specific percentage - in a robust economic state - the houses within the same neighborhood are expected to increase by the same amount.
Fact: Any worth at which an appraiser arrives concerning a certain home is always individualized, based on certain factors concluded from the data of comparable houses and other considerations within the home itself. 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 Anderson Appraisal, LLC
Myth: The property's exterior is determinate of the actual worth of the home; there is no need to do an interior inspection.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the property on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection definitely can't provide all of the data needed.
Myth: Since you're the one funding for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the report. However, consumers have to be supplied with a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it exceeds the needs of their lending company.
Fact: It is a very good idea for home buyers to peruse a copy of their report so that they can verify the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information stored in an report that should be useful to the home buyer 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 hire an appraiser is if a house needs its value estimated in a lender-based sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a variety 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: You shouldn't need to get an appraisal if you order a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting report. The purpose of a home inspector is to determine the condition of the house and its major components, then write a report on these findings.