Common myths about appraising
Legally, a real estate appraiser must be state certified to perform legitimate real estate appraisals for federally-supported transactions. Also by law, you are allowed to demand a copy of the finished report from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value must be equivocal to the assessed value of the property.
Fact: While most states uphold the idea that assessed value equates estimated market value, this usually is not the case. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby houses are perfect examples of why the price can vary.
Myth: Depending on if the appraisal is done for the buyer or the seller, the cost of the property will vary.
Fact: The appraiser has no personal interest in the outcome of the report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is found, it should equate to the replacement cost of the house.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. The dollar amount needed to rebuild a property is what constitutes the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a home.
Fact: An appraisal is an assertion of data concluded from the house's size, location, proximity to some facilities, the condition of the property and the cost of recent comparable sales. You can depend on Bruce W. Reyle & Company Real Estate Appraisers and Consultants's staff to be professional in assessing this information.
Myth: When the economy is on the rise and the worth of homes are reported to be increasing by a certain percentage, the other houses in the area can be expected to rise based on that same percentage.
Fact: All appreciation of value is on a one-on-one basis, concluded by information on relevant conditions and the data of comparable houses. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Fairfax City County or Fairfax, Virginia ?Contact us
Myth: The house's outside is determinate of the actual price of the house; there is no need to do an interior appraisal.
Fact: There are a number of different factors that show the value of a home; these factors include location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data required.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their home, they legally own their appraisal report.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. However, consumers must be supplied with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal report so long as it meets the necessities of their lending company.
Fact: It is almost imperative for home buyers to peruse a copy of their appraisal report so that they can verify the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data contained in an appraisal that can be useful to the consumer in the future, such as 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 real estate property values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is no different than a home inspection report.
Fact: Appraisal reports are nothing like a home inspection report. The reason behind an appraisal is to form an opinion of fair market value during the appraisal process and the production of the report. A home inspector determines the condition of the home and its major components and reports their findings.