Appraisal myths & facts
By law, an appraiser is required to be state-licensed to produce appraisals for federally-backed sales. Also by law, you have the ability to request a copy of the finished appraisal report from your lender. Contact Weaver Appraisal Group if you have any questions about the appraisal procedure.
Myth: Market value will be similar to the assessed value of the property.
Fact: While most states uphold the concept that assessed value is equal to estimated market value, this generally is not the case. There are times when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Butner have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the cost of the house will vary.
Fact: The opinion of value of the home does not affect the salary of the appraiser; as such, the appraiser has no personal interest in the opinion of value of the house. Obviously, he will provide task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement cost of the home is always is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a house without being under influence from any outside party to purchase or sell. If the home were reconstructed, the dollar amount necessary to do so would form the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Fact: There are many differing ways that an appraiser will use to make a comprehensive investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable properties.
Myth: In a powerful economy - when the worth of properties in a given neighborhood are reported to be rising by a certain percentage - the values of individual homes in the proximity can be expected to increase by that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a particular home is always personalized, based on certain factors derived from the information of comparable properties and other considerations within the home itself. It makes no difference whether the economy is powerful or poor.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact Weaver Appraisal Group
Myth: You can generally see what a house is worth simply by looking at the outside.
Fact: House worth is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by examining the property from the exterior.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance real estate, they own their appraisal.
Fact: Unless a lender releases its interest in the document, it is legally owned by the lending company that purchased the appraisal. Consumers must be provided with a version of the report through request as per the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their report so long as it satisfies the needs of their lending group.
Fact: It is almost imperative for home buyers to peruse a copy of their appraisal report so that they can double-check the accuracy of the report, 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 appraisal report makes an invaluable 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: 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 perform 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: An appraisal report does not fulfill the same purpose as an inspection report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. House inspectors will write a report that will determine the condition of the home and its major components and possible damage.