Appraisal myths & facts
Legally, an appraiser has to be state certified to produce substantiated appraisal reports for federally-supported purchase. You have the ability to request a copy of the completed appraisal from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: While most states back the concept that assessed value is the same as estimated market value, this commonly is not the case. 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 years or more, it may vary wildly.
Myth: The buyer or the seller may have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The cost 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 provide services with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Market value will be the same as replacement cost.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific property. If the home were reconstructed, the dollar amount required to do so would make up the replacement cost.
Myth: There are specific ways that real estate appraisers use to show the opinion of value of a home, like the price per square foot.
Fact: There are many varied formulae that an appraiser will use to make a detailed investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to certain facilities and the cost of recently sold comparable homes.
Myth: In a powerful economy - when the costs of properties in a given county are found to be appreciating by a particular percentage - the prices of individual homes in the vicinity can be expected to increase by that same percentage.
Fact: Any value at which an appraiser concludes concerning a specific home is always individualized, based on certain factors derived from the information of comparable properties and other considerations within the property itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?Contact our professional staff
Myth: The property's exterior is determinate of the actual price of the property; it is unnecessary to do an interior appraisal.
Fact: Property value is determined by a number of variables, including location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information required.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they own their appraisal.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Consumers must be given a version of the document upon written request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal document so long as it meets the necessities of their lending institution.
Fact: It is almost imperative for consumers to check over a copy of their report so that they can verify the accuracy of the document, 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 a wealth of information contained in an appraisal that could 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a property during a sales transaction involving a lender.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. House inspectors will create a report that will explain the condition of the house and its major components and possible damage.