Appraisal myths debunked
It is enforced by the government that a real estate appraiser must be state-licensed to create appraisal reports for federally-supported property purchases in California. You have the ability to receive a copy of the finished appraisal from your lender. Contact All City Appraisal if you have any concerns about the appraisal procedure.
Myth: Market value will always be equivocal to the assessed value of the property.
Fact: It might be that California, like most states, validates the idea that the assessed value is no different from the market value; however, this is not often the case. Often when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the Woodland Hills have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on if the appraisal is ordered for the buyer or the seller, the value of the property will vary.
Fact: The appraiser has no personal interest in the result of the appraisal report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the home will be is on par with the market value.
Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Appraisers use a formula, such as a certain price per square foot, to conclude the cost of a house.
Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the cost of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a powerful economy - when the costs of homes in a given area are found to be appreciating by a particular percentage - the costs of individual houses in the area can be expected to increase by that same percentage.
Fact: All increase of worth is on a case-by-case basis, determined by information on relevant elements and the data of comparable homes. This is true in good economic times as well as bad.
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Myth: The property's outside is determinate of the actual worth of the house; there is no need to do an interior inspection.
Fact: House value is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found simply by looking at the house from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance real estate, they legally own their appraisal report.
Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the appraisal. However, home buyers must be given a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the necessities of their lending agency.
Fact: Only if home buyers examine a copy of their report can they ensure its accuracy and possibly need to question the result. 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 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 proximity.
Myth: The only reason someone would order an appraisal is if a house needs its worth assessed in a lender-based sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and may provide a variety of 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 have had a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. A home inspector determines the condition of the building and its major components and reports these findings.