Appraisal myths debunked
It is enforced by legal agencies that an appraiser needs to be state-licensed to offer appraisals for federally-related home purchases in Florida. Also by law, you have the ability to receive a copy of the completed appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Generally when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the Valrico have not been reassessed for years or more, it may vary wildly.
Myth: The value of a property will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is established, it should be similar to the replacement cost of the home.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount needed to reconstruct a house in-kind.
Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the cost of a house.
Fact: An appraisal is an assertion of data based on the home's size, location, proximity to specific facilities, the condition of the home and the cost of recent comparable sales. You can rely on Appraisal Services of Brandon, Inc .'s appraisers to be forthright in assessing this information.
Myth: In a robust economy - when the costs of properties in a given neighborhood are reported to be rising by a particular percentage - the worth of individual houses in the vicinity can be expected to rise by that same percentage.
Fact: Value increase of a certain property has to be determined on an individualized basis, factoring in data on comparable houses and other relevant elements. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Hillsborough County or Valrico, FL?Contact Appraisal Services of Brandon, Inc .
Myth: The house's exterior is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these things can be derived just by inspecting the house from the exterior.
Myth: Since you're the one funding for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Fact: Legally, the document is owned by the lending agency unless the lender releases their interest in the document. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the report must be provided with it by their lending agency.
Myth: It doesn't concern consumers what's in the report so long as it satisfies the needs of their lender.
Fact: Only if consumers look through a copy of their report 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. There is a great deal of information contained in an 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the price of a property during a sales transaction involving a lending company.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a lot of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is no different than a home inspection.
Fact: Appraisal reports are completely different than a home inspection. The function of an appraisal is to find an opinion of fair market value during the appraisal process and the completion of the report. The point of a home inspector is to find the condition of the home and its major components, then provide a report on these inspection.