Appraisal myths debunked
Legally, a real estate appraiser has to be state certified to write substantiated real estate appraisals for federally-related purchase. Also by law, you have the ability to receive a copy of the completed report from your lender. Contact Phoenix Valuations, LLC if you have any questions about the appraisal procedure.
Myth: Market value will be similar to the assessed value of the property.
Fact: While most states uphold the suggestion that assessed value approximates estimated market value, this usually is not the case. Often when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the area have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller sometimes may have some pull in the value of the house depending upon for whom the appraiser is working.
Fact: The value of the house does not affect the pay of the appraiser; due to this, the appraiser has no personal interest in the cost of the house. This means that he will provide job with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement value of the property will be is on par with the market value.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular house, with neither being under pressure to buy or sell. The replacement cost is the dollar amount needed to reconstruct a house in-kind.
Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the cost of a property.
Fact: There are many different formulae that an appraiser will use to make an in-depth analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to undesirable facilities and the cost of recently sold comparable properties.
Myth: When the economy is doing well and the value of properties are found to be rising by a certain percentage, the other properties in the proximity can be expected to rise based on that same percentage.
Fact: Any value at which an appraiser arrives in regards to a particular house is always individualized, based on certain factors pulled from the data of comparable properties and other considerations within the home itself. It makes no difference if the economy is excellent or on the decline.
Have other questions about appraisers, appraising or real estate in Maricopa County or Scottsdale, AZ?Contact Phoenix Valuations, LLC
Myth: The house's outside is determinate of the actual value of the property; it is unnecessary to do an interior inspection.
Fact: There are a number of different factors that conclude the value of a home; 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 providing the money for the appraisal when applying for your loan to purchase or refinance real estate, you own the provided appraisal.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the report. Because of the Equal Credit Opportunity Act, any consumer requesting a copy of the appraisal report must be given one by their lending company.
Myth: There's no point for home buyers to even worry about what the appraisal report contains so long as their lending institution is satisfied.
Fact: Only if home buyers examine a copy of their report can they double-check 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 appraisal can serve as a record for the future, containing a great deal 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 house values in home sales involving mortgage-lending transactions.
Fact: Ordering an appraisal 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: You don't have to get an appraisal if you order a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. House inspectors will write a report that will explain the condition of the home and its major components and possible damage.