Common myths about appraising
It is enforced by legal agencies that a real estate appraiser must be state-licensed to write appraisals for federally-related real estate transactions in North Carolina. The law gives you the right to receive a copy of your completed appraisal report from your lending agency after it has been provided. Contact Weaver Appraisal Group if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will equate to market value.
Fact: While most states back the concept that assessed value equates estimated market value, this usually is not the case. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller often will have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: The cost of the home does not affect the payment of the appraiser; because of this, the appraiser has no preconceived interest in the worth of the house. This means that he will render business with impartiality and independence regardless for whom the appraisal is produced.
Myth: Any time market value is found, it should equal the replacement cost of the house.
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 particular house. The dollar amount required to reconstruct a house is what forms the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to arrive at the value of a home.
Fact: An appraisal report is an amalgamation of data based on the property's size, location, proximity to specific facilities, the condition of the property and the cost of recent comparable sales. You can count on Weaver Appraisal Group's staff to be forthright in assessing this information.
Myth: In a robust economy - when the worth of houses in a given area are reported to be increasing by a particular percentage - the values of individual homes in the vicinity can be expected to increase by that same percentage.
Fact: Price appreciation of a certain home must be concluded on an individualized basis, factoring in information on comparable homes and other relevant considerations. This is true in fair economic times as well as poor.
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Myth: The property's exterior is determinate of the actual value of the house; there is no need to do an interior appraisal.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. An exterior inspection obviously can't provide all of the information necessary.
Myth: Considering that the consumer is the one who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the document. However, home buyers must be given a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal report so long as it satisfies the requirements of their lending group.
Fact: A home buyer should definitely inspect their report; there may be some questions or some worries about the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, as it contains a great deal of data - including, but certainly 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: The only reason someone would order an appraisal is if a property needs its cost estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you order a home inspection.
Fact: Appraisal reports are completely different than a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. House inspectors will compose a report that will show the condition of the property and its major components and possible damage.