Common myths about appraising
Legally, an appraiser needs to be state certified to perform legitimate real estate appraisals for federally-backed sales. You have the ability to acquire a copy of the finished report from your lending agency. Contact Bruce W. Reyle Commercial and Residential Real Estate Appraisers & Consultants if you have any concerns about the appraisal procedure.
Myth: Market value has to be equivocal to the assessed value of the property.
Fact: While most states uphold the concept that assessed value is equal to estimated market value, this commonly is not the case. Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby properties are perfect examples of why there might be a differential in price.
Myth: The opinion of value of a home will differ depending upon if the appraisal is provided for the buyer or the seller.
Fact: The opinion of value of the house does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the home. This means that he will complete his business with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Market value will equal replacement cost.
Fact: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property. The replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to arrive at the cost of a house.
Fact: An appraisal report is an amalgamation of data concluded from the home's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on Bruce W. Reyle Commercial and Residential Real Estate Appraisers & Consultants's appraisers to be forthright in assessing this data.
Myth: In a robust economy - when the values of houses in a given region are reported to be appreciating by a certain percentage - the worth of individual homes in the proximity can be expected to rise by that same percentage.
Fact: All increase of price is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable houses. It makes no difference if the economy is good or bad.
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: Just seeing what the home looks like on its exterior gives an excellent idea of its value.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must inspect the property on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these variables can be found simply by examining the property from the exterior.
Myth: Since you're the one providing the money for the appraisal when applying for your loan to purchase or refinance real estate, you own the ordered appraisal.
Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the document. Home buyers have to be given a copy of the report upon written request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their report so long as it meets the requirements of their lending agency.
Fact: A home buyer should definitely look through their document; there could be some questions or some worries with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an appraisal report that can be useful to the home buyer 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 region.
Myth: Appraisals are ordered only to estimate home values in house sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. The task of a home inspector is to determine the condition of the house and its major components, then produce a report on these findings.