Appraisal myths & facts
It is required by legal agencies that an appraiser needs to be state-licensed to create appraisals for federally-related real estate transactions in Maryland. Also by law, you have the ability to demand a copy of the finished report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value will be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby homes are exact examples of why there might be a differential in price.
Myth: The buyer or the seller can have an influence in the cost of the house depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is ordered.
Myth: Market value will equal replacement cost.
Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount demanded to rebuild a property is what shows the replacement cost.
Myth: There are certain ways that real estate appraisers use to determine the cost of a property, like the price per square foot.
Fact: An appraisal report is a collection of data concluded from the property's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on Magee Appraisal Service's staff to be ethical in assessing this data.
Myth: When the economy is strong and the cost of properties are reported to be appreciating by a certain percentage, the other houses in the area can be expected to rise based on that same percentage.
Fact: Any cost at which an appraiser concludes in regards to a particular house is always personalized, based on certain factors found from the information of comparable homes and other considerations within the home itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Frederick County or Fredrick, MD?Contact Magee Appraisal Service
Myth: Just examining what the home looks like on its exterior gives an idea of its value.
Fact: There are a number of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the information necessary.
Myth: Considering that the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal so long as it meets the necessities of their lending company.
Fact: It is a very good idea for consumers to read a copy of their appraisal report so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal that could 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 vicinity.
Myth: Appraisers are hired only to assess building values in house sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you get a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection. The point of an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. A home inspector analyzes the condition of the house and its main components and reports their findings.