Common myths about appraising
Legally, a real estate appraiser must be state certified to write legitimate appraisal reports for federally-related purchase. You are also entitled by law to request a copy of the finished report from your lender. Contact Levison Appraisal Company if you have any concerns about the appraisal procedure.
Myth: Assessed value should be similar to to market value.
Fact: This is not often the case; 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 homes in the vicinity have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller often will have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The price of the property does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the value of the house. Obviously, he will complete his business with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement cost of the property is always is on par with the market value.
Fact: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any outside group to buy or sell. The dollar amount necessary to reconstruct a property is what shows the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to come to the value of a house.
Fact: An appraisal report is an assertion of data based on the property's size, location, proximity to some facilities, the condition of the property and the worth of recent comparable sales. You can depend on Levison Appraisal Company's appraisers to be ethical in assessing this information.
Myth: In a strong economy - when the values of homes in a given county are found to be increasing by a particular percentage - the values of individual houses in the area can be expected to increase by that same percentage.
Fact: Any worth at which an appraiser arrives concerning a certain property is always personalized, based on certain factors found from the data of comparable homes and other specifications within the property itself. It doesn't matter if the economy is doing well or declining.
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Myth: Just seeing what the house looks like on its exterior gives a good idea of its cost.
Fact: There are a number of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data needed.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance real estate, you own the produced appraisal report.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that purchased the appraisal. Home buyers have to be provided with a version of the report upon written request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal so long as it exceeds the requirements of their lending company.
Fact: It is very important for home buyers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, as it contains a great deal of information - including, but 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a home during a sales transaction involving a lender.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a lot of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection report. The purpose of an appraisal is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector determines the condition of the property and its main components and reports their findings.