Appraisal myths & facts
Legally, a real estate appraiser has to be state certified to create substantiated real estate appraisals for federally-supported transactions. Also by law, you are entitled to demand a copy of the finished report from your lending agency. Contact Magee Appraisal Service if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser is required to 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. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when properties in the vicinity have not been reassessed for an extended time.
Myth: The buyer or the seller can have an influence in the cost of the property depending upon for whom the appraiser is working.
Fact: The value of the home does not affect the payment of the appraiser; as a result, the appraiser has no vested interest in the value of the house. What this means is he will conduct job with impartiality and independence regardless for whom the appraisal is produced.
Myth: The replacement value of the property will be is on par with the market value.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. If the house were rebuilt, the dollar amount necessary to do so would form the replacement cost.
Myth: There are certain ways that real estate appraisers use to find the cost of a home, like the price per square foot.
Fact: An appraisal is an amalgamation of data concluded from the house's size, location, proximity to some facilities, the condition of the home and the worth of recent comparable sales. You can depend on Magee Appraisal Service's appraisers to be forthright in assessing this information.
Myth: As houses appreciate by a specific percentage - in a robust economy - the houses nearby are figured to appreciate by the same amount.
Fact: Any price at which an appraiser arrives concerning a specific property is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the property itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Frederick County or Fredrick, MD?Contact us
Myth: The house's outside is determinate of the actual worth of the house; it is unnecessary to do an interior inspection.
Fact: There are a multitude of different factors that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just viewing the property from the exterior.
Myth: Since you're the one funding for the appraisal report when applying for your loan to buy or refinance your house, you own the ordered appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the document. However, home buyers have to be supplied with a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it meets the requirements of their lending group.
Fact: It is almost imperative for consumers to look at a copy of their appraisal 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 report can serve as a record for the future, containing an exorbitant 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 estimate house values in house sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser finds an opinion of value in the appraisal process and resulting report. The job of a home inspector is to determine the condition of the house and its main components, then provide a report on their conclusions.