Appraisal myths debunked
It is mandated by law that an appraiser is required to be state-licensed to create appraisal reports for federally-supported real estate purchases in Arizona. The law allows you to receive a copy of your finished report from your lender after it has been provided. Contact us if you have any questions about the appraisal process.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: While most states support the idea that assessed value is the same as estimated market value, this usually is not the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby properties are exact examples of why this occurs.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement cost of the home should be is on par with the market value.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular property. Replacement cost is the dollar amount required to reconstruct a home in-kind.
Myth: There are certain ways that appraisers use to show the opinion of value of a home, such as the price per square foot.
Fact: There are many differing calculations that an appraiser will use to make a detailed analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the worth of recently sold comparable houses.
Myth: When the economy is doing well and the sales prices of properties are reported to be appreciating by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser arrives in regards to a certain property is always individualized, based on certain factors found from the information of comparable houses and other considerations within the home itself. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Maricopa County or Mesa, Az?Contact ASAP Appraisal Services, Inc.
Myth: The home's outside is determinate of the actual worth of the home; it is unnecessary to do an interior inspection.
Fact: There are a multitude of different factors that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by looking at the property from the outside.
Myth: Because the consumer is the party who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the appraisal. Home buyers have to be supplied with a copy of the report upon written request because of the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their report so long as it satisfies the necessities of their lending group.
Fact: Only if home buyers examine a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an appraisal report that will probably 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 region.
Myth: Appraisers are hired only to estimate house values in home sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The point of an appraisal is to find an opinion of fair market value during the appraisal process and the completion of the appraisal. The task of a home inspector is to assess the condition of the home and its main components, then compose a report on their conclusions.