Appraisal myths & facts
It is required by the government that a real estate appraiser needs to be state-licensed to perform appraisals for federally-supported property sales in North Carolina. Also by law, you are entitled to request a copy of the finished appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value will always be similar to to market value.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby houses are exact examples of why there might be a differential in price.
Myth: The value of a house will differ depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The appraised value of the property does not affect the payment of the appraiser; as a result, the appraiser has no pressured interest in the opinion of value of the home. What this means is he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the home should be is on par with the market value.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific house, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount necessary to rebuild a home in-kind.
Myth: Specific methods, like the price per square foot, are what appraisers use to ascertain the worth of a property.
Fact: Appraisers complete a detailed analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.
Myth: In a robust economy - when the prices of homes in a given area are found to be increasing by a particular percentage - the worth of individual houses in the vicinity can be expected to rise by that same percentage.
Fact: Any price at which an appraiser concludes concerning a certain property is always personalized, based on certain factors found from the data of comparable homes and other considerations within the property itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact us
Myth: The house's exterior is determinate of the actual value of the home; it is unnecessary to do an interior inspection.
Fact: There are a number of different variables that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply viewing the property from the outside.
Myth: Because 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 report is theirs.
Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal. Due the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be given one by their lender.
Myth: There's no need for consumers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.
Fact: It is very important for consumers to go through a copy of their report so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal report that will probably be useful to the home buyer 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 proximity.
Myth: Appraisals are ordered only to estimate house values in house sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection report has a completely different purpose than an appraisal report. The purpose of an appraisal report is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will write a report that will explain the condition of the property and its major components and possible damage.