Common myths about appraising
By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-related purchases. The law entitles you to receive a copy of your finished appraisal from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal procedure.
Myth: Market value will be the same as the assessed value of the property.
Fact: This is not often the case; 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 occurred and the assessor is unaware of the improvements, or when properties in the area have not been reassessed for an extended time.
Myth: The buyer or the seller will have some pull in the value of the property depending upon for whom the appraiser is working.
Fact: The cost of the house does not affect the salary of the appraiser; due to this, the appraiser has no pressured interest in the value of the house. This means that he will complete his job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is found, it should be the same as the replacement cost of the property.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular house, with neither being under pressure to buy or sell. The replacement cost is the dollar amount required to rebuild a house in-kind.
Myth: There are certain methods that appraisers use to determine the cost of a home, like the price per square foot.
Fact: There are many varied formulae that an appraiser will use to make a full analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable homes.
Myth: In a powerful economy - when the prices of homes in a given county are reported to be increasing by a certain percentage - the prices of individual properties in the proximity can be expected to rise by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, found by information on relevant elements and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Saint Johns County or Ponte Vedra Beach, FL?Contact us
Myth: You can commonly find what a house is worth simply by looking at the outside.
Fact: There are a multitude of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data required.
Myth: Considering that the consumer is the party who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Legally, the appraisal is owned by the lending company unless the lender releases their interest in the document. However, consumers have to be given a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their document so long as it meets the necessities of their lending company.
Fact: Only if consumers read a copy of their appraisal 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. An appraisal report can double as a record for the future, containing an incredible amount of data - including, but certainly 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 proximity.
Myth: The only reason someone would hire an appraiser is if a home needs its worth assessed in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and may perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is the same as a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection. The job of the appraiser is to form an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the home and its major components and reports these findings.