Appraisal myths debunked
By law, an appraiser needs to be state-licensed to perform appraisals for federally-supported transactions. You have the ability to acquire a copy of the finished appraisal from your lender. Contact Willamette Valley Appraisal Professionals if you have any concerns about the appraisal procedure.
Myth: Assessed value will always equate to market value.
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. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby homes are prime examples of why the price can vary.
Myth: The buyer or the seller often will have leverage in the value of the property depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the outcome of the report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Any time market value is established, it should be similar to the replacement cost of the home.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a house without being under influence from any outside group to purchase or sell. If the house were reconstructed, the dollar amount required to do so would be the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a property, such as the price per square foot.
Fact: Appraisers make a comprehensive analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent costs of comparable homes.
Myth: When the economy is on the rise and the worth of properties are reported to be increasing by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.
Fact: All increase of value is on a case-by-case basis, determined by information on relevant elements and the data of comparable properties. This is true in strong economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Clackamas County or Milwaukie, OR?Contact Willamette Valley Appraisal Professionals
Myth: You can often see what a property is worth simply by looking at the exterior.
Fact: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data needed.
Myth: Since you're the one providing the money for the appraisal when applying for your loan to buy or refinance your house, you own the provided appraisal.
Fact: Legally, the report is owned by the lending agency unless the lender relinquishes their interest in the appraisal. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be provided with it by their lender.
Myth: Home buyers need not worry about what is in their appraisal document so long as it meets the needs of their lending institution.
Fact: A home buyer should definitely inspect their appraisal; there might be some questions or some concerns about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, containing helpful and often-revealing data - including 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 price of a property during a sales transaction involving a lending agency.
Fact: Appraisers can have many different qualifications and designations which allow them to perform 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 order a home inspection.
Fact: An appraisal does not fulfill the same purpose as an inspection report. The appraiser forms an opinion of value in the appraisal process and resulting appraisal report. House inspectors will create a report that will explain the condition of the home and its major components and possible damage.