Common myths about appraising

It is enforced by law that a real estate appraiser is required to be state-licensed to produce appraisal reports for federally-related real estate purchases in Oregon. You are also entitled by law to request a copy of the completed appraisal from your lender. Contact Willamette Valley Appraisal Professionals if you have any concerns about the appraisal process.

Myth: Assessed value should always be the same as to market value.

Fact: It might be that Oregon, like most states, supports the suggestion that the assessed value is no different from the market value; however, this is not often the case. At times when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.

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

Fact: There is no real interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is ordered.

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

Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. Replacement value is the dollar amount needed to rebuild a property in-kind.

Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the cost of a house.

Fact: An appraisal report is a collection of data based on the home's size, location, proximity to certain facilities, the condition of the property and the cost of recent comparable sales. You can count on Willamette Valley Appraisal Professionals's staff to be professional in assessing this information.

Myth: In a robust economy - when the prices of properties in a given region are found to be rising by a particular percentage - the prices of individual homes in the proximity can be expected to rise by that same percentage.

Fact: Any worth at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors derived from the information of comparable homes and other specifications within the home itself. It makes no difference if the economy is powerful or poor.

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Myth: Just examining what the property looks like on the outside gives a good idea of its value.

Fact: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data needed.

Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to purchase or refinance your house, you own the ordered appraisal.

Fact: The document is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the report. However, consumers have to be given a copy of the document upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the report so long as it satisfies the needs of their lender.

Fact: Only if home buyers look at a copy of their report can they verify 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 information stored in an report that should 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 vicinity.

Myth: The only reason someone would hire an appraiser is if a house needs its worth estimated in a lender-based sales transaction.

Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: There's no reason to get an appraisal if you have had a home inspection.

Fact: A home inspection report serves a completely different purpose than an appraisal report. The task of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.