Common myths about appraising

Legally, an appraiser has to be state certified to perform legitimate real estate appraisals for federally-supported purchase. Also by law, you are allowed to demand a copy of the completed appraisal from your lending agency. Contact our professional staff if you have any concerns about the appraisal process.

Myth: Assessed value generally will be the same as to market value.

Fact: This is not often the case; most states do support the suggestion 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 not aware of the improvement or other homes in the Butner have not been reassessed for a good length of time, it may vary wildly.

Myth: Depending on whether the appraisal is written for the buyer or the seller, the opinion of value of the home will vary.

Fact: There is no vested interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is written.

Myth: The replacement cost of the property is always is on par with the market value.

Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. Replacement value is the dollar amount needed to reconstruct a property in-kind.

Myth: Specific methods, like the price per square foot, are the methods appraisers use to arrive at the cost of a house.

Fact: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to some facilities, the condition of the house and the value of recent comparable sales. You can depend on Weaver Appraisal Group's appraisers to be professional in assessing this information.

Myth: When the economy is strong and the value of houses are found to be rising by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.

Fact: All appreciation of value is on a case-by-case basis, found by information on relevant elements and the data of comparable properties. It makes no difference if the economy is robust or terrible.

Myth: Just looking at what the house looks like on its exterior gives an idea of its cost.

Fact: Property worth is determined by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the data required.

Myth: Because the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: Legally, the appraisal is owned by the lending company unless the lender releases their interest in the document. Home buyers must be supplied with a copy of the document upon written request due to the Equal Credit Opportunity Act.

Myth: Home buyers need not care about what is in their appraisal document so long as it exceeds the requirements of their lending institution.

Fact: Only if consumers look over a copy of their report can they ensure its accuracy and possibly need to question the result. 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 report that can 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 area.