Appraisal myths & facts
By law, an appraiser must be state-licensed to perform appraisals for federally-supported purchases. You are also entitled by law to receive a copy of the completed appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Assessed value should always equate to market value.
Fact: While most states back the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an prolonged period.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the opinion of value of the house will vary.
Fact: The value of the house does not affect the salary of the appraiser; as a result, the appraiser has no vested interest in the opinion of value of the property. What this means is he will provide task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement cost of the house will be is on par with the market value.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a property without being under pressure from any outside group to purchase or sell. The dollar amount necessary to rebuild a house is what forms the replacement cost.
Myth: Specific methods, like the price per square foot, are the ways appraisers use to ascertain the cost of a home.
Fact: An appraisal is a collection of data based on the home's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can count on All City Appraisal's appraisers to be professional in assessing this data.
Myth: When the economy is on the rise and the value of houses are found to be increasing by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.
Fact: All appreciation of worth is on a case-by-case basis, concluded by data on relevant conditions and the data of comparable houses. It makes no difference whether the economy is robust or bad.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Woodland Hills, CA?Contact our professional staff
Myth: Just examining what the home looks like on the outside gives a good idea of its cost.
Fact: To conclude an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no possible way to get all of this data from simply viewing the house from the outside.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be provided with one by their lender.
Myth: There's no point for home buyers to even concern themselves with what the appraisal report contains so long as their lending agency is fine with the contents therein.
Fact: It is a very good idea for home buyers to peruse a copy of their appraisal report so that they can double-check 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. Also, the appraisal report makes an excellent record for future reference, comprised of useful and often-revealing information - including, but not limited to, 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: The only reason someone would order an appraisal is if a home needs its price estimated in a lender sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and will provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal report. The task of the appraiser is to find an opinion of value in the appraisal process and through writing the report. House inspectors will produce a report that will explain the condition of the house and its major components and possible damage.