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By law, an appraiser needs to be state-licensed to perform appraisals for federally-related transactions. You are also entitled by law to demand a copy of the finished report from your lender. Contact us if you have any questions about the appraisal procedure.

Premier Appraisals, Inc. discusses myths and realities about real estate appraisals and appraisers

Myth: The value that is ascertained by the appraiser should be exactly the same as the market value.
Reality: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby properties are perfect examples of why there might be a differential in price.

Myth: The buyer or the seller may have leverage in the cost of the house depending upon for whom the appraiser is working.
Reality: There is no personal interest on the part of the appraiser in the outcome of the report, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is conducted.

Myth: Market value should be the same as replacement cost.
Reality: 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 specific property. The dollar amount required to rebuild a property is what shows the replacement cost.

Myth: There are certain ways that real estate appraisers use to show the value of a house, such as the price per square foot.
Reality: An appraisal report is an amalgamation of data concluded from the home's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can depend on Premier Appraisals, Inc.'s staff to be forthright in assessing this information.

Myth: In a robust economy - when the sales prices of houses in a given county are found to be appreciating by a certain percentage - the prices of individual houses in the area can be expected to rise by that same percentage.
Reality: All appreciation of value is on a one-on-one basis, found by data on relevant conditions and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.

Myth: Just seeing what the house looks like on the outside gives a good idea of its value.
Reality: There are a number of different variables that determine the value of a house; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found just by inspecting the home from the outside.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Reality: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the report. Consumers have to be given a copy of the report through request because of the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their appraisal document so long as it exceeds the necessities of their lending company.
Reality: It is very important for home buyers to look at a copy of their appraisal 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. An appraisal report can serve as a record for the future, as it contains 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: Appraisers are hired only to assess house values in house sales involving mortgage-lending deals.
Reality: Based upon their qualifications and designations, appraisers can and will perform a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal report is no different than a home inspection report.
Reality: A home inspection has a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting document. A home inspector analyzes the condition of the home and its major components and reports these findings.

Contact us if you have any other questions about appraisers, appraising or real estate in Suffolk or Sayville, New York.