Appraisal myths debunked
By law, an appraiser is required to be state-licensed to produce appraisals for federally-related sales. You are also entitled by law to receive a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will be the same as to market value.
Fact: It is probable that Florida, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an prolonged period.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the house will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value should equate to replacement cost.
Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a property without being under influence from any external party to buy or sell. If the house were reconstructed, the dollar amount required to do so would make up the replacement cost.
Myth: Appraisers use a formula, such as a certain price per square foot, to arrive at the cost of a property.
Fact: An appraisal report is a collection of data based on the house's size, location, proximity to undesirable facilities, the condition of the home and the cost of recent comparable sales. You can rely on Appraisal Services of Brandon, Inc .'s staff to be ethical in assessing this information.
Myth: In a powerful economy - when the sales prices of houses in a given neighborhood are found to be increasing by a certain percentage - the prices of individual properties in the vicinity can be expected to appreciate by that same percentage.
Fact: Worth appreciation of a specific property is always determined on an individualized basis, factoring in data on comparable houses and other relevant elements. It makes no difference if the economy is powerful or on the decline.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact Appraisal Services of Brandon, Inc .
Myth: The home's outside is determinate of the actual worth of the property; it is unnecessary to do an interior inspection.
Fact: To find an accurate value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information required.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to purchase or refinance real estate, you own the produced appraisal report.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal. Home buyers have to be provided with a version of the document through request as per the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even concern themselves with what the report contains so long as their lending agency is fine with the contents therein.
Fact: It is a very good idea for home buyers to peruse a copy of their appraisal so that they can verify the accuracy of the report, in case it's required to question its accuracy. 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, 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a house during a sales transaction involving a lender.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: An appraisal report does not serve the same purpose as an inspection. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. A home inspector determines the condition of the property and its major components and reports their findings.