Appraisal myths debunked
It is enforced by legal agencies that an appraiser needs to be state-licensed to write appraisal reports for federally-related property purchases in Arizona. 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: The value that is assessed by the appraiser is required to be equivalent to the market value.
Fact: While most states uphold the idea that assessed value is equal to estimated market value, this commonly is not the case. Often when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the appraised value of the home will vary.
Fact: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.
Myth: Any time market value is established, it should equate to the replacement cost of the property.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under influence from any outside party to purchase or sell. Replacement value is the dollar amount necessary to reconstruct a home in-kind.
Myth: Specific formulae, like the price per square foot of the property, are what appraisers use to arrive at the value of a home.
Fact: An appraisal report is an assertion of data based on the property's size, location, proximity to undesirable facilities, the condition of the home and the price of recent comparable sales. You can rely on Phoenix Valuations, LLC's appraisers to be forthright in assessing this information.
Myth: When the economy is robust and the sales prices of properties are reported to be appreciating by a certain percentage, the other homes in the vicinity can be expected to appreciate based on that same percentage.
Fact: All appreciation of value is on a one-on-one basis, found by data on relevant conditions and the data of comparable houses. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Maricopa County or Scottsdale, AZ?Contact Phoenix Valuations, LLC
Myth: Just seeing what the home looks like on its exterior gives a good idea of its cost.
Fact: Home value is determined by a number of factors, including area, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the data needed.
Myth: Since you're the one funding for the appraisal when applying for your loan to purchase or refinance real estate, you own the ordered appraisal report.
Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. By the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be given it by their lending company.
Myth: It doesn't concern consumers what's in the report so long as it satisfies the necessities of their lending agency.
Fact: A home buyer should definitely look through their document; there might be some questions or some concerns with the accuracy of the inspection that should be addressed. 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 vicinity.
Myth: Appraisals are ordered only to assess house values in house sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection report.
Fact: A home inspection serves a completely different purpose than an appraisal report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal. The job of a home inspector is to approximate the condition of the home and its main components, then create a report on these conclusions.