Appraisal myths debunked
By law, an appraiser needs to be state-licensed to offer appraisals for federally-related purchases. Also by law, you have the ability to demand a copy of the completed appraisal from your lender. Contact Bruce W. Reyle & Company Real Estate Appraisers and Consultants if you have any questions about the appraisal process.
Myth: Assessed value should equate to market value.
Fact: It could be that Virginia , like most states, supports the idea that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby homes are excellent examples of why the price can vary.
Myth: The appraised value of a property will vary depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement cost of the house will be is on par with the market value.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. If the home were reconstructed, the dollar amount needed to do so would form the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a house, like the price per square foot.
Fact: An appraisal report is an assertion of information based on the home's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can depend on Bruce W. Reyle & Company Real Estate Appraisers and Consultants's staff to be forthright in assessing this information.
Myth: As houses appreciate by a certain percentage - in a robust economic state - the houses in proximity are expected to increase by the same amount.
Fact: Any cost at which an appraiser arrives in regards to a particular house is always personalized, based on certain factors pulled from the information of comparable houses and other considerations within the home itself. This is true in strong economic times as well as poor.
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Myth: The property's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived simply by examining the house from the outside.
Myth: Because the consumer is the person who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the report. Because of the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be provided with it by their lending agency.
Myth: Consumers need not be concerned with what is in their document so long as it meets the requirements of their lending company.
Fact: A consumer should definitely read through their document; there might be some questions or some worries with the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an appraisal that could 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a house during a sales transaction involving a lending agency.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Fact: Appraisal reports are nothing like a home inspection report. The task of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. The purpose of a home inspector is to find the condition of the home and its major components, then produce a report on their conclusions.