Appraisal myths & facts
Legally, a real estate appraiser must be state certified to write substantiated appraisal reports for federally-backed transactions. The law entitles you to get a copy of your completed appraisal report from your lending agency after it has been provided. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Assessed value will always be similar to to market value.
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. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the Woodland Hills have not been reassessed for a good length of time, it may vary wildly.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the cost of the home will vary.
Fact: The cost of the home does not affect the salary of the appraiser; due to this, the appraiser has no vested interest in the opinion of value of the home. This means that he will provide job with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equal the replacement cost of the home.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under duress to buy or sell. If the house were reconstructed, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the cost of a house.
Fact: An appraisal is an assertion of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can count on All City Appraisal's appraisers to be ethical in assessing this information.
Myth: As properties increase their worth by a certain percentage - in a robust economic state - the homes in proximity are expected to appreciate by the same amount.
Fact: All appreciation of price is on a case-by-case basis, determined by data on relevant conditions and the data of comparable houses. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Woodland Hills, CA?Contact our professional staff
Myth: The property's outside is determinate of the actual worth of the home; there is no need to do an interior inspection.
Fact: To find an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these factors can be derived just by viewing the property from the outside.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance real estate, they legally own their appraisal report.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the appraisal report. Home buyers have to be provided with a version of the appraisal report upon written request due to 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 agency is satisfied.
Fact: Only if home buyers look through a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal report that will probably be useful to the consumer 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 region.
Myth: The only reason someone would order an appraisal is if a property needs its worth assessed in a lender sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is the same as a home inspection report.
Fact: A home inspection report serves a completely different purpose than an appraisal. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. House inspectors will write a report that will explain the condition of the house and its major components and possible damage.