Common myths about appraising
It is mandated by legal agencies that an appraiser is required to be state-licensed to write appraisals for federally-supported home transactions in Arizona. You are also entitled by law to acquire a copy of the completed appraisal from your lending agency. Contact Phoenix Valuations, LLC if you have any concerns about the appraisal procedure.
Myth: Assessed value will always be the same as to market value.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. There are times when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Scottsdale have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller may have an influence in the cost of the property depending upon for whom the appraiser is working.
Fact: The price of the home does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the property. Obviously, he will conduct task with impartiality and independence regardless for whom the appraisal is produced.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific property, with neither being under duress to buy or sell. The dollar amount required to rebuild a home is what shows the replacement cost.
Myth: There are specific methods that real estate appraisers use to determine the value of a property, such as the price per square foot.
Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can count on Phoenix Valuations, LLC's appraisers to be honest in assessing this data.
Myth: When the economy is on the rise and the cost of properties are found to be rising by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.
Fact: Any worth at which an appraiser concludes concerning a specific house is always individualized, based on certain factors derived from the data of comparable houses and other considerations within the property itself. This is true in strong economic times as well as bad.
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Myth: The property's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Fact: To conclude an accurate value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by looking at the property from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their home, they own their appraisal.
Fact: Legally, the appraisal is owned by the lending agency unless the lender relinquishes their interest in the report. However, consumers must be supplied with a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even concern themselves with what the report contains so long as their lending company is satisfied.
Fact: Only if consumers examine a copy of their report can they ensure its accuracy and possibly need to question the result. 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, since it contains an incredible amount of data - 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 area.
Myth: Appraisers are hired only to estimate home values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series 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: An appraisal is no different than a home inspection report.
Fact: Appraisal reports are definitely not the same as a home inspection report. An appraiser finds an opinion of value in the appraisal process and resulting report. A home inspector determines the condition of the building and its major components and reports their findings.