Common myths about appraising

By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-related purchases. Also by law, you have the ability to demand a copy of the finished appraisal report from your lender. Contact our professional staff if you have any concerns about the appraisal process.

Myth: Market value must be the same as the assessed value of the property.

Fact: It could be that Oregon, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not often the case. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the Milwaukie have not been reassessed for years or more, it may vary wildly.

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

Fact: The appraiser has no vested interest in the outcome of the report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: The replacement cost of the home will be is on par with the market value.

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under undue influence to buy or sell. The dollar amount needed to reconstruct a property is what shows the replacement cost.

Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the worth of a house.

Fact: An appraisal is an assertion of data based on the house's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can count on Willamette Valley Appraisal Professionals's appraisers to be forthright in assessing this data.

Myth: When the economy is on the rise and the cost of houses are reported to be increasing by a certain percentage, the other properties in the vicinity can be expected to increase based on that same percentage.

Fact: Any worth at which an appraiser arrives concerning a specific property 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 on the rise or declining.

Myth: The property's exterior is determinate of the actual price of the house; there is no need to do an interior appraisal.

Fact: To determine an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these things can be found simply by looking at the home from the exterior.

Myth: Because the consumer is the party who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.

Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.

Myth: Consumers need not care about what is in their report so long as it exceeds the necessities of their lending company.

Fact: A consumer should definitely look through their appraisal; there could be some questions or some concerns about the accuracy of the analysis that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, filled with helpful and often-revealing information - including, but 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 vicinity.