Appraisal myths debunked

By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-related purchases. The law gives you the right to acquire a copy of your completed appraisal from your lender after it has been provided. Contact us if you have any concerns about the appraisal process.

Myth: The value that is ascertained by the appraiser should be equivalent to the market value.

Fact: While most states back the concept that assessed value is equal to estimated market value, this usually is not the case. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby houses are excellent examples of why the price can vary.

Myth: The buyer or the seller will have impact in the value of the house depending upon for whom the appraiser is working.

Fact: There is no vested interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is conducted.

Myth: Any time market value is established, it should be the same as the replacement cost of the property.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell. If the property were reconstructed, the dollar amount required to do so would form the replacement cost.

Myth: Specific methods, such as the price per square foot of the property, are the methods appraisers use to ascertain the price of a home.

Fact: Appraisers complete a full analysis of all factors pertaining to the worth of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

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

Fact: Cost appreciation of a certain property must be concluded on a case-by-case basis, factoring in information on comparable properties and other relevant considerations. This is true in excellent economic times as well as bad.

Have other questions about appraisers, appraising or real estate in Prince William County or Nokesville, VA?

Contact Karen A. Zirpoli - KAZ Appraisals, LLC

Myth: The home's outside is determinate of the actual value of the house; it is unnecessary to do an interior appraisal.

Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by inspecting the house from the outside.

Myth: Considering that the consumer is the one who provides the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.

Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. However, consumers have to be supplied with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.

Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lender is satisfied.

Fact: A home buyer should definitely look through their document; there could be some questions or some worries with the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, comprised of helpful and often-revealing information - 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 vicinity.

Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a house during a sales transaction involving a lending agency.

Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: A house inspection serves the same purpose as an appraisal.

Fact: A home inspection report serves a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. A home inspector analyzes the condition of the property and its main components and reports these findings.

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