Appraisal myths & facts
Legally, an appraiser needs to be state certified to produce legitimate real estate appraisals for federally-backed purchase. Also by law, you have the ability to request a copy of the finished appraisal report from your lending agency. Contact Northern Arizona Appraisal, Inc. if you have any questions about the appraisal process.
Myth: Market value will always be equivocal to the assessed value of the property.
Fact: It is probable that Arizona, like most states, supports the idea that the assessed value equates to the market value; however, this is not often the case. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: The buyer or the seller often will have leverage in the cost of the home depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is created.
Myth: The replacement value of the house should be is on par with the market value.
Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home. The dollar amount necessary to reconstruct a home is what constitutes the replacement cost.
Myth: There are certain ways that appraisers use to find the cost of a property, such as the price per square foot.
Fact: An appraisal report is an amalgamation of information based on the home's size, location, proximity to certain facilities, the condition of the home and the cost of recent comparable sales. You can count on Northern Arizona Appraisal, Inc.'s appraisers to be professional in assessing this information.
Myth: In a powerful economy - when the prices of properties in a given neighborhood are found to be increasing by a particular percentage - the costs of individual properties in the area can be expected to increase by that same percentage.
Fact: All appreciation of value is on a one-on-one basis, concluded by information on relevant conditions and the data of comparable properties. It makes no difference whether the economy is excellent or terrible.
Have other questions about appraisers, appraising or real estate in Maricopa County or Phoenix, AZ?Contact our professional staff
Myth: The property's exterior is determinate of the actual price of the property; there is no need to do an interior inspection.
Fact: There are a number of different factors that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived just by inspecting the house from the outside.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to purchase or refinance real estate, you own the provided appraisal report.
Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the document. Because of the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be given it by their lender.
Myth: Home buyers need not care about what is in their appraisal document so long as it meets the needs of their lending institution.
Fact: It is very important for consumers to check over a copy of their appraisal report so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect record for future reference, comprised of helpful and often-revealing information - 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the worth of a property during a sales transaction involving a lending institution.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You don't need to get an appraisal if you have had a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. The point of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the report. The purpose of a home inspector is to approximate the condition of the property and its main components, then compose a report on these conclusions.