Appraisal myths & facts

By law, an appraiser needs to be state-licensed to produce appraisals for federally-backed sales. The law entitles you to acquire a copy of your finished appraisal from your lender after it has been produced. Contact our professional staff if you have any concerns about the appraisal process.

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

Fact: While most states support the idea that assessed value is equal to estimated market value, this often is not the case. Often when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Butner have not been reassessed for a good length of time, it may vary wildly.

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

Fact: The price of the home does not affect the pay of the appraiser; as a result, the appraiser has no personal interest in the value of the property. This means that he will render job with impartiality and independence regardless for whom the appraisal is provided.

Myth: Market value should equate to replacement cost.

Fact: The way market value is derived is based on what a buyer would likely pay a willing seller for a property without being under influence from any outside party to buy or sell. The replacement cost is the dollar amount required to rebuild a home in-kind.

Myth: Appraisers use a calculation, such as a certain price per square foot, to conclude the cost of a home.

Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the cost of a home, including its location, condition, size, proximity to facilities and recent worth of comparable properties.

Myth: When the economy is strong and the worth of homes are found to be increasing by a certain percentage, the other houses in the proximity can be expected to increase based on that same percentage.

Fact: All increase of worth is on a case-by-case basis, determined by information on relevant elements and the data of comparable properties. This is true in fair economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Granville County or Butner, NC?

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Myth: You can commonly find what a home is worth simply by looking at the outside.

Fact: Home value is concluded by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data required.

Myth: Because consumers fund appraisals when applying for loans to buy or refinance their property, they own their appraisal.

Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the appraisal. By the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be provided with it by their lending agency.

Myth: There's no need for home buyers to even care about what the appraisal contains so long as their lending agency is fine with the contents therein.

Fact: A consumer should definitely read through their report; there will probably 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 a great deal of information stored in an appraisal report 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 area.

Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a property during a sales transaction involving a lending company.

Fact: Depending upon their qualifications and designations, appraisers can and often do perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal is the same as a home inspection report.

Fact: Appraisal reports are completely different than a home inspection report. The job of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. House inspectors will compose a report that will determine the condition of the house and its major components and possible damage.