Appraisal myths & facts
By law, an appraiser needs to be state-licensed to perform appraisals for federally-supported sales. The law gives you the right to acquire a copy of your finished appraisal from your lender after it has been provided. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Fact: While most states back the suggestion that assessed value equates estimated market value, this generally is not the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby houses are prime examples of why there might be a differential in price.
Myth: Depending on if the appraisal is written for the buyer or the seller, the opinion of value of the house will vary.
Fact: The value of the property does not affect the payment of the appraiser; as a result, the appraiser has no preconceived interest in the value of the property. What this means is he will render task with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Any time market value is found, it should be similar to the replacement cost of the house.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular home, with neither being under pressure to buy or sell. The dollar amount required to reconstruct a home is what shows the replacement cost.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the cost of a house.
Fact: An appraisal report is an amalgamation of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the home and the price of recent comparable sales. You can depend on Phoenix Valuations, LLC's staff to be professional in assessing this information.
Myth: When the economy is strong and the sales prices of homes are found to be rising by a certain percentage, the other houses in the vicinity can be expected to increase based on that same percentage.
Fact: Any price at which an appraiser arrives in regards to a specific home is always personalized, based on certain factors found from the information of comparable homes and other considerations within the property itself. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Maricopa County or Scottsdale, AZ?Contact Phoenix Valuations, LLC
Myth: The property's exterior is determinate of the actual worth of the property; there is no need to do an interior inspection.
Fact: Home worth is concluded by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. As you can see, none of these things can be derived just by examining the home from the exterior.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their house, they own their appraisal report.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be supplied with a version of the appraisal report upon written request because of the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal so long as it meets the requirements of their lender.
Fact: Only if home buyers look over a copy of their appraisal can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an appraisal 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a home during a sales transaction involving a lending agency.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. A home inspector assesses the condition of the home and its main components and reports their findings.