Common myths about appraising

By law, an appraiser must be state-licensed to perform appraisals for federally-related purchases. Also by law, you have the ability to receive a copy of the finished report from your lending agency. Contact Appraisal Services of Brandon, Inc . if you have any questions about the appraisal process.

Myth: The value that is ascertained by the appraiser should be the same as the 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 not often the case. Usually when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Valrico have not been reassessed for quite a while, it may vary wildly.

Myth: The buyer or the seller will have impact in the cost of the house depending upon for whom the appraiser is working.

Fact: The value of the house does not affect the payment of the appraiser; due to this, the appraiser has no preconceived interest in the worth of the property. Obviously, he will conduct services with impartiality and objectivity regardless for whom the appraisal is produced.

Myth: Market value will equate to replacement cost.

Fact: Without any suggestion from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. The replacement cost is the dollar amount necessary to rebuild a house in-kind.

Myth: There are certain ways that appraisers use to show the opinion of value of a house, such as the price per square foot.

Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable homes.

Myth: When the economy is doing well and the cost of homes are reported to be increasing by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.

Fact: All increase of value is on a case-by-case basis, concluded by information on relevant elements and the data of comparable properties. It makes no difference whether the economy is robust or bad.

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Myth: Just examining what the property looks like on its exterior gives an idea of its cost.

Fact: To find an accurate price beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply viewing the property from the outside.

Myth: Considering that the consumer is the one who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.

Fact: Unless a lender releases its interest in the document, it is legally owned by the lending company that purchased the appraisal. However, home buyers have to be supplied with a copy of the document upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the needs of their lending agency.

Fact: It is a very good idea for consumers to go through a copy of their appraisal so that they can double-check the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored 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 proximity.

Myth: Appraisals are ordered only to assess house values in property sales involving mortgage-lending transactions.

Fact: Depending upon their qualifications and designations, appraisers can and often do perform a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: There's no need to get an appraisal if you have had a home inspection.

Fact: A home inspection has a completely different purpose than an appraisal report. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. House inspectors will write a report that will show the condition of the house and its major components and possible damage.