Appraisal myths debunked
By law, an appraiser needs to be state-licensed to perform appraisals for federally-related purchases. The law allows you to receive a copy of your finished appraisal from your lending agency after it has been provided. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value should always be the same as to market value.
Fact: It might be that Arizona, like most states, validates the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller can have impact in the cost of the home depending upon for whom the appraiser is working.
Fact: The value of the property does not affect the payment of the appraiser; due to this, the appraiser has no personal interest in the worth of the house. This means that he will render job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Market value will equal replacement cost.
Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a home without being under influence from any external party to buy or sell. If the property were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: There are certain ways that real estate appraisers use to show the cost of a home, like the price per square foot.
Fact: Appraisers make a comprehensive analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: As houses increase their worth by a specific percentage - in a strong economic state - the houses nearby are expected to appreciate by the same amount.
Fact: Value appreciation of a specific property has to be concluded on a case-by-case basis, factoring in information on comparable properties and other relevant elements. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Maricopa County or Scottsdale, AZ?Contact our professional staff
Myth: The home's outside is determinate of the actual worth of the house; it is unnecessary to do an interior appraisal.
Fact: Home value is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by inspecting the property from the exterior.
Myth: Considering that the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be provided with a copy of the document upon written request as per the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even care about what the appraisal contains so long as their lending agency is fine with the contents therein.
Fact: Only if home buyers check out a copy of their appraisal 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. Also, the appraisal makes an invaluable record for future reference, comprised of useful and often-revealing data - 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 proximity.
Myth: The only reason someone would hire an appraiser is if a property needs its value assessed in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you order a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection report. The function of an appraisal report is to find an opinion of fair market value during the appraisal process and the completion of the report. House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.