Appraisal myths debunked
It is mandated by the government that an appraiser needs to be state-licensed to write appraisal reports for federally-supported property purchases in California. You have the ability to request a copy of the finished appraisal report from your lender. Contact All City Appraisal if you have any concerns about the appraisal procedure.
Myth: Market value needs to be similar to the assessed value of the property.
Fact: While most states uphold the idea that assessed value is equal to estimated market value, this commonly is not the case. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Woodland Hills have not been reassessed for years or more, it may vary wildly.
Myth: The value of a home will differ depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no personal interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value should equate to replacement cost.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any external group to buy or sell. The dollar amount needed to rebuild a property is what shows the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to come to the value of a property.
Fact: An appraisal report is an amalgamation of information based on the property's size, location, proximity to some facilities, the condition of the house and the cost of recent comparable sales. You can rely on All City Appraisal's staff to be forthright in assessing this data.
Myth: In a strong economy - when the worth of homes in a given neighborhood are found to be rising by a certain percentage - the values of individual properties in the proximity can be expected to appreciate by that same percentage.
Fact: Any cost at which an appraiser arrives concerning a specific property is always individualized, based on certain factors concluded from the information of comparable properties and other specifications within the property itself. It makes no difference if the economy is powerful or on the decline.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Woodland Hills, CA?Contact us
Myth: You can often see what a home is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude the value of a home; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by looking at the home from the outside.
Myth: Since you're the one paying for the appraisal when applying for the loan to purchase or refinance your house, you own the provided appraisal.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. Home buyers must be given a copy of the report upon written request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their appraisal so long as it meets the necessities of their lending company.
Fact: A home buyer should definitely inspect their document; there might be some questions or some worries about the accuracy of the analysis that should be addressed. 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, containing 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 area.
Myth: Appraisers are hired only to assess real estate property values in home sales involving mortgage-lending deals.
Fact: Based upon their qualifications and designations, appraisers can and do perform a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you have had a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The point of an appraisal report is to form an opinion of fair market value during the appraisal process and the completion of the report. The task of a home inspector is to approximate the condition of the property and its major components, then provide a report on their inspection.