Common myths about appraising
Legally, a real estate appraiser needs to be state certified to produce legitimate appraisal reports for federally-backed purchase. Also by law, you are allowed to request a copy of the finished appraisal report from your lender. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Assessed value should always be similar to to market value.
Fact: It is probable that Arizona, like most states, supports the idea that the assessed value is the same as the market value; however, this is not often the case. Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when properties in the area have not been reassessed for an extended period.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the opinion of value of the property will vary.
Fact: The appraiser has no vested interest in the result of the appraisal report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value will equate to replacement cost.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property. If the home were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Specific formulae, like the price per square foot of the property, are the ways appraisers use to arrive at the value of a property.
Fact: There are many varied ways that an appraiser will use to make a detailed investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable houses.
Myth: In a strong economy - when the costs of houses in a given area are reported to be increasing by a particular percentage - the prices of individual homes in the proximity can be expected to increase by that same percentage.
Fact: Any cost at which an appraiser concludes concerning a particular home is always individualized, based on certain factors found from the data of comparable properties and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Maricopa County or Mesa, Az?Contact ASAP Appraisal Services, Inc.
Myth: You can generally find what a home is worth simply by looking at the outside.
Fact: Home worth is concluded by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just looking at the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Home buyers must be given a version of the document through request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their appraisal so long as it satisfies the needs of their lending institution.
Fact: It is a very good idea for consumers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal report 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: There is no reason to order an appraisal unless you are trying to get an assessment of the price of a home during a sales transaction involving a lender.
Fact: Hiring an appraiser can fulfill a variety of needs 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: There's no reason to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. House inspectors will create a report that will determine the condition of the property and its major components and possible damage.