Appraisal myths debunked
Legally, an appraiser is required to be state certified to create legitimate real estate appraisals for federally-related transactions. The law entitles you to receive a copy of your finished appraisal from your lending agency after it has been produced. Contact our professional staff if you have any questions about the appraisal process.
Myth: Market value will be similar to the assessed value of the property.
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. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the Nesconset have not been reassessed for years or more, it may vary wildly.
Myth: The appraised value of a property will change depending upon if the appraisal is ordered for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should equal the replacement cost of the property.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under duress to buy or sell. The dollar amount demanded to reconstruct a house is what forms the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the cost of a house, such as the price per square foot.
Fact: Appraisers complete a detailed analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.
Myth: As houses appreciate by a specific percentage - in a robust economy - the homes nearby are expected to appreciate by the same amount.
Fact: All appreciation of price is on a case-by-case basis, found by data on relevant elements and the data of comparable homes. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Suffolk County or Nesconset, NY?Contact Premier Appraisals, Inc.
Myth: Just looking at what the house looks like on the outside gives a good idea of its worth.
Fact: Property worth is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by inspecting the property from the outside.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they own their appraisal report.
Fact: Legally, the document is owned by the lender unless the lender releases their interest in the document. However, consumers must be provided with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the requirements of their lending agency.
Fact: It is a very good idea for home buyers to peruse a copy of their report so that they can double-check 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. There is an incredible amount of data contained in an appraisal report that can 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: The only reason someone would hire an appraiser is if a home needs its price assessed in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Fact: A home inspection has a completely different purpose than an appraisal report. The appraiser finds an opinion of value in the appraisal process and resulting document. House inspectors will produce a report that will determine the condition of the house and its major components and possible damage.