Appraisal myths debunked
It is enforced by law that an appraiser is required to be state-licensed to perform appraisal reports for federally-related real estate transactions in Maryland. Also by law, you have the right to demand a copy of the finished appraisal report from your lender. Contact us if you have any questions about the appraisal process.
Myth: Assessed value should always be the same as 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. Usually when interior remodeling has been done and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the appraised value of the house will vary.
Fact: The appraiser has no personal interest in the result of the appraisal report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement cost of the home is always is on par with the market value.
Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house. The dollar amount required to rebuild a house is what shows the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the value of a property.
Fact: An appraisal is a collection of information based on the home's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can rely on Magee Appraisal Service's staff to be professional in assessing this data.
Myth: In a strong economy - when the costs of homes in a given neighborhood are reported to be increasing by a particular percentage - the values 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 found from the information of comparable properties and other considerations within the property itself. It makes no difference if the economy is powerful or bad.
Have other questions about appraisers, appraising or real estate in Frederick County or Fredrick, MD?Contact Magee Appraisal Service
Myth: The house's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by examining the property from the outside.
Myth: Because the consumer is the party who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Home buyers must be given a copy of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lending company is satisfied.
Fact: A consumer should definitely read through their appraisal report; there may be some questions or some worries about the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an report that can be useful to the home buyer 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: Appraisals are ordered only to assess real estate property values in home sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a multitude 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: There's no reason to get an appraisal if you get a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. The purpose of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the home and its main components and reports their findings.