Common myths about appraising

By law, an appraiser needs to be state-licensed to produce appraisals for federally-backed purchases. You have the ability to acquire a copy of the completed report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: Assessed value will always be equal to market value.

Fact: While most states support the suggestion that assessed value equates estimated market value, this commonly is not the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Nesconset have not been reassessed for quite some time, it may vary wildly.

Myth: The buyer or the seller will have an influence in the value of the property depending upon for whom the appraiser is working.

Fact: The appraised value of the property does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the cost of the property. Obviously, he will conduct business with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: Any time market value is established, it should equal the replacement cost of the home.

Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house. Replacement cost is the dollar amount required to reconstruct a property in-kind.

Myth: Certain methods, like the price per square foot, are what appraisers use to arrive at the worth of a home.

Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the value of a property, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.

Myth: As homes appreciate by a specific percentage - in a robust economic state - the properties in proximity are figured to appreciate by the same amount.

Fact: All increase of value is on an individual basis, determined by information on relevant elements and the data of comparable houses. This is true in fair economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Suffolk County or Nesconset, NY?

Contact our professional staff

Myth: You can generally tell what a house is worth simply by looking at the outside.

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

Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance real estate, you own the ordered appraisal.

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. However, consumers must be supplied with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the needs of their lender.

Fact: A consumer should definitely look through their appraisal report; there might be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, since it contains a great deal of data - 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: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending deals.

Fact: Appraisers can have many different qualifications and designations which allow them to provide a lot of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: An appraisal is no different than a home inspection.

Fact: An appraisal report does not serve the same purpose as an inspection report. An appraiser concludes on an opinion of value in the appraisal process and resulting document. House inspectors will produce a report that will show the condition of the house and its major components and possible damage.