Common myths about appraising
Legally, a real estate appraiser has to be state certified to perform legitimate appraisal reports for federally-related purchase. The law entitles you to receive a copy of your finished appraisal from your lender after it has been produced. Contact us if you have any concerns about the appraisal procedure.
Myth: Market value must be the same as the assessed value of the property.
Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. At times when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the value of the home will vary.
Fact: The opinion of value of the house does not affect the salary of the appraiser; as a result, the appraiser has no pressured interest in the worth of the property. This means that he will conduct job with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the property will be is on par with the market value.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular house. The dollar amount necessary to rebuild a home is what forms the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the cost of a house.
Fact: Appraisers complete a comprehensive analysis of all factors pertaining to the worth of a home, including its location, condition, size, proximity to facilities and recent costs of comparable properties.
Myth: In a strong economy - when the worth of houses in a given county are reported to be appreciating by a certain percentage - the worth of individual houses in the proximity can be expected to increase by that same percentage.
Fact: Cost appreciation of a specific home is always concluded on a case-by-case basis, factoring in information on comparable properties and other relevant specifications within the property itself. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Davidson, Rutherford, Sumner, Wilson, or Williamson County TN?Contact Greg Easter Appraisals
Myth: Just looking at what the property looks like on its exterior gives a good idea of its worth.
Fact: Home worth is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the information required.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance real estate, they legally own their appraisal report.
Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given it by their lender.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the needs of their lender.
Fact: It is very important for consumers to go through a copy of their appraisal so that they can double-check the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable 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 area.
Myth: The only reason someone would order an appraisal is if a home needs its price estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety 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: 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 creating the report. A home inspector assesses the condition of the building and its main components and reports their findings.