Appraisal myths debunked
Legally, a real estate appraiser must be state certified to create legitimate appraisal reports for federally-backed purchase. The law gives you the right to acquire a copy of your completed report from your lender after it has been provided. Contact Appraisal Services of Brandon, Inc . if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby properties are prime examples of why there might be a differential in price.
Myth: The buyer or the seller often will have some pull in the value of the home depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is conducted.
Myth: The replacement value of the house is always is on par with the market value.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a house without being under influence from any external group to purchase or sell. The dollar amount necessary to rebuild a property is what shows the replacement cost.
Myth: There are specific ways that appraisers use to find the cost of a home, like the price per square foot.
Fact: An appraisal is a collection of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the price of recent comparable sales. You can depend on Appraisal Services of Brandon, Inc .'s appraisers to be forthright in assessing this data.
Myth: When the economy is on the rise and the sales prices of homes are found to be appreciating by a certain percentage, the other properties in the neighborhood can be expected to rise based on that same percentage.
Fact: Cost appreciation of a certain property is always concluded on a case-by-case basis, factoring in information on comparable homes and other relevant considerations. It makes no difference whether the economy is strong or poor.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact us
Myth: The property's exterior is determinate of the actual price of the property; there is no need to do an interior inspection.
Fact: Home worth is determined by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data needed.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Fact: The report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be given one by their lender.
Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the requirements of their lending agency.
Fact: It is a very good idea for home buyers to go through a copy of their report so that they can double-check the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a valuable record for future reference, comprised of useful and often-revealing data - 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: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a property during a sales transaction involving a lending agency.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't need to get an appraisal if you have had a home inspection.
Fact: Appraisal reports are nothing like a home inspection. The task of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. A home inspector assesses the condition of the house and its major components and reports these findings.