Appraisal myths debunked
Legally, an appraiser needs to be state certified to perform substantiated real estate appraisals for federally-supported sales. The law entitles you to receive a copy of your finished appraisal report from your lender after it has been provided. Contact Appraisal Services of Brandon, Inc . if you have any questions about the appraisal process.
Myth: Assessed value generally will equate to market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the home will vary.
Fact: The price of the property does not affect the pay of the appraiser; due to this, the appraiser has no personal interest in the opinion of value of the property. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Market value will approximate replacement cost.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular home. If the property were reconstructed, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the worth of a property.
Fact: An appraisal report is an amalgamation of information based on the home's size, location, proximity to undesirable facilities, the condition of the property and the cost of recent comparable sales. You can rely on Appraisal Services of Brandon, Inc .'s appraisers to be professional in assessing this data.
Myth: In a powerful economy - when the costs of houses in a given region are reported to be appreciating by a certain percentage - the costs of individual houses in the vicinity can be expected to increase by that same percentage.
Fact: Any value at which an appraiser arrives concerning a specific home is always individualized, based on certain factors concluded from the information of comparable houses and other specifications within the house itself. It makes no difference whether the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact Appraisal Services of Brandon, Inc .
Myth: Just looking at what the property looks like on its exterior gives an excellent idea of its worth.
Fact: There are a multitude of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived simply by viewing the home from the exterior.
Myth: Since the consumer is the party who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. By the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be provided with one by their lending company.
Myth: There's no need for consumers to even care about what the report contains so long as their lending institution is fine with the contents therein.
Fact: A consumer should definitely read through their appraisal; there might be some questions or some worries with the accuracy of the analysis that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing an incredible amount of information - 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending agency.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is the same as a home inspection report.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. House inspectors will create a report that will explain the condition of the house and its major components and possible damage.