Common myths about appraising
Legally, an appraiser has to be state certified to create legitimate appraisal reports for federally-backed purchase. The law allows you to receive a copy of your completed appraisal from your lender after it has been produced. Contact Herrin Appraisal Company if you have any concerns about the appraisal process.
Myth: Assessed value should equate to market value.
Fact: While most states support the suggestion that assessed value approximates estimated market value, this often is not the case. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller can have impact in the value of the property depending upon for whom the appraiser is working.
Fact: The opinion of value of the property does not affect the pay of the appraiser; as a result, the appraiser has no vested interest in the worth of the house. Obviously, he will render business with impartiality and independence regardless for whom the appraisal is provided.
Myth: The replacement value of the home will be is on par with the market value.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under undue influence to buy or sell. The dollar amount needed to rebuild a home is what constitutes the replacement cost.
Myth: There are specific ways that appraisers use to determine the opinion of value of a property, such as the price per square foot.
Fact: There are many differing formulae that an appraiser will use to make an in-depth analysis of every factor pertaining to the property, such as the size, location, condition, how close it is to certain facilities and the opinion of value of recently sold comparable properties.
Myth: In a robust economy - when the prices of houses in a given area are reported to be rising by a particular percentage - the worth of individual houses in the area can be expected to increase by that same percentage.
Fact: Any value at which an appraiser concludes in regards to a certain house is always individualized, based on certain factors found from the information of comparable properties and other specifications within the home itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Forsyth County or Clemmons, NC?Contact Herrin Appraisal Company
Myth: The property's exterior is determinate of the actual value of the property; there is no need to do an interior appraisal.
Fact: There are a multitude of different variables that determine property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by viewing the property from the exterior.
Myth: Since the consumer is the person who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. However, home buyers must be given a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even concern themselves with what the appraisal report contains so long as their lender is fine with the contents therein.
Fact: Only if home buyers check out a copy of their appraisal 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 report makes a near perfect record for future reference, containing useful and often-revealing data - including 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 home needs its price assessed in a lender-based sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is the same as a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal report. The purpose of an appraisal is to arrive at an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector analyzes the condition of the home and its main components and reports these findings.
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