Appraisal myths & facts

It is required by law that a real estate appraiser needs to be state-licensed to perform appraisals for federally-supported real estate purchases in North Carolina. Also by law, you have the right to request a copy of the finished report from your lending agency. Contact our professional staff if you have any questions about the appraisal process.

Myth: Market value must be equivocal to the assessed value of the property.

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. Often when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the Butner have not been reassessed for quite a while, it may vary wildly.

Myth: The appraised value of a property will differ depending upon whether the appraisal is conducted for the buyer or the seller.

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

Myth: The replacement cost of the house will be is on par with the market value.

Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. The dollar amount necessary to reconstruct a house is what forms the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to come to the cost of a house.

Fact: There are many varied ways that an appraiser will use to make a full investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable houses.

Myth: When the economy is doing well and the sales prices of properties are reported to be rising by a certain percentage, the other houses in the proximity can be expected to increase based on that same percentage.

Fact: Cost increase of a certain property is always concluded on a case-by-case basis, factoring in information on comparable houses and other relevant considerations. 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?

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Myth: Just examining what the home looks like on its exterior gives a good idea of its value.

Fact: To find an accurate value beyond all doubt, an appraiser must assess the property on a variety of factors based on area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply looking at the property from the outside.

Myth: Because the consumer is the party who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.

Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Because of the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be provided with it by their lending company.

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

Fact: A home buyer should definitely read through their appraisal; there may be some questions or some worries with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an appraisal that could be useful to the consumer 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 region.

Myth: Appraisers are hired only to assess home values in home sales involving mortgage-lending transactions.

Fact: Appraisers can have many varied qualifications and designations which allow them to provide a multitude of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: You shouldn't need to get an appraisal if you have had a home inspection.

Fact: Appraisal reports are definitely not the same as a home inspection. The job of the appraiser is to find an opinion of value in the appraisal process and through creating the report. A home inspector determines the condition of the building and its main components and reports their findings.