Common myths about appraising
Legally, a real estate appraiser needs to be state certified to write legitimate real estate appraisals for federally-related transactions. Also by law, you have the ability to request a copy of the completed appraisal report from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value must be similar to the assessed value of the property.
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 remodeling has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended period of time.
Myth: The appraised value of a property will change depending upon whether the appraisal is provided for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is created.
Myth: The replacement value of the house should be is on par with the market value.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain house, with neither being under pressure to buy or sell. 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 value of a property.
Fact: There are many numerous calculations that an appraiser will use to make a detailed analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the opinion of value of recently sold comparable homes.
Myth: As properties increase their worth by a specific percentage - in a strong economic state - the houses in proximity are expected to appreciate by the same amount.
Fact: Worth appreciation of a specific property is always concluded on an individualized basis, factoring in data on comparable houses and other relevant elements. It makes no difference whether the economy is powerful or poor.
Have other questions about appraisers, appraising or real estate in Broward County or Weston/Ft. Lauderdale, FL?Contact DANIEL I KANDEL
Myth: Just looking at what the house looks like on the outside gives a good idea of its worth.
Fact: To find an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found simply by examining the home from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. However, consumers have to be provided with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even care about what the appraisal report contains so long as their lending institution is fine with the contents therein.
Fact: A home buyer should definitely look through their report; there may be some questions or some worries with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable record for future reference, filled with helpful and often-revealing information - 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 area.
Myth: Appraisals are ordered only to estimate real estate property values in house sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is the same as a home inspection.
Fact: Appraisal reports are nothing like a home inspection. The reason behind an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector determines the condition of the property and its main components and reports their findings.