Common myths about appraising

Legally, a real estate appraiser has to be state certified to produce legitimate real estate appraisals for federally-backed sales. You also have the right to receive a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.

Fact: While most states back the idea that assessed value equates estimated market value, this generally is not the case. Sometimes when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Nokesville have not been reassessed for quite some time, it may vary wildly.

Myth: The value of a home will change depending upon whether the appraisal is provided for the buyer or the seller.

Fact: The appraiser has no personal interest in the outcome of the report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.

Myth: Market value will equate to 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 house. If the home were reconstructed, the dollar amount required to do so would be the replacement cost.

Myth: There are specific ways that appraisers use to determine the opinion of value of a house, such as the price per square foot.

Fact: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can rely on Karen A. Zirpoli - KAZ Appraisals, LLC's appraisers to be ethical in assessing this information.

Myth: In a powerful economy - when the worth of houses in a given area are found to be appreciating by a particular percentage - the prices of individual properties in the vicinity can be expected to rise by that same percentage.

Fact: All appreciation of price is on a one-on-one basis, determined by data on relevant considerations and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.

Myth: Just examining what the property looks like on the outside gives an excellent idea of its value.

Fact: There are a multitude of different factors that show the value of a home; these factors include location, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data required.

Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they legally own their appraisal report.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the appraisal report must be provided with one by their lender.

Myth: It doesn't concern consumers what's in the appraisal so long as it meets the needs of their lending company.

Fact: Only if consumers read a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect 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 area.