Appraisal myths debunked
Legally, a real estate appraiser must be state certified to create substantiated real estate appraisals for federally-backed transactions. You are also entitled by law to demand a copy of the completed report from your lender. Contact Bruce W. Reyle Commercial and Residential Real Estate Appraisers & Consultants if you have any questions about the appraisal procedure.
Myth: Market value must be equivocal to the assessed value of the property.
Fact: It is possible that Virginia, like most states, supports the common myth that the assessed value is the same as the market value; however, this is not often the case. Sometimes when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The appraised value of a home will change depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value should be the same as replacement cost.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a house without being under influence from any outside group to buy or sell. If the home were rebuilt, the dollar amount required to do so would form the replacement cost.
Myth: There are specific ways that real estate appraisers use to determine the value of a house, such as the price per square foot.
Fact: An appraisal report is an assertion of information concluded from the house's size, location, proximity to certain facilities, the condition of the property and the cost of recent comparable sales. You can count on Bruce W. Reyle Commercial and Residential Real Estate Appraisers & Consultants's staff to be honest in assessing this data.
Myth: In a strong economy - when the costs of homes in a given county are found to be appreciating by a particular percentage - the costs of individual properties in the proximity can be expected to rise by that same percentage.
Fact: All appreciation of price is on an individual basis, determined by data on relevant elements and the data of comparable homes. It makes no difference whether the economy is strong or on the decline.
Have other questions about appraisers, appraising or real estate in Fairfax City County or Fairfax, Virginia?Contact Bruce W. Reyle Commercial and Residential Real Estate Appraisers & Consultants
Myth: The home's exterior is determinate of the actual value of the property; there is no need to do an interior appraisal.
Fact: Home worth is determined by a number of factors, including location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just viewing the property from the exterior.
Myth: Because the consumer is the party who provides the money to pay for the appraisal 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 report, it is legally owned by the lending company that purchased the appraisal. Consumers must be given a version of the document upon written request because of the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their document so long as it satisfies the needs of their lending company.
Fact: It is almost imperative for consumers to look at a copy of their appraisal report so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, containing 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 order an appraisal is if a house needs its cost estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal 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 get a home inspection.
Fact: Appraisal reports are completely different than a home inspection. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. The task of a home inspector is to determine the condition of the home and its major components, then produce a report on their conclusions.