Common myths about appraising
Legally, an appraiser needs to be state certified to create substantiated appraisal reports for federally-supported transactions. The law entitles you to acquire a copy of your finished report from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal procedure.
Myth: Market value will always be similar to the assessed value of the property.
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 remodeling that the assessor is unaware of and a lack of reassessment on nearby properties are perfect examples of why there might be a differential in price.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the home will vary.
Fact: The appraiser has no personal interest in the result of the appraisal and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value will equate to replacement cost.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under pressure from any external party to purchase or sell. The dollar amount necessary to reconstruct a home is what shows the replacement cost.
Myth: There are specific ways that appraisers use to find the value of a home, like the price per square foot.
Fact: An appraisal is an amalgamation of data concluded from the home's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on Northern Arizona Appraisal, Inc.'s staff to be honest in assessing this data.
Myth: When the economy is strong and the cost of houses are found to be rising by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.
Fact: All appreciation of worth is on an individual basis, determined by data on relevant elements and the data of comparable homes. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Maricopa County or Phoenix, AZ?Contact Northern Arizona Appraisal, Inc.
Myth: The property's outside is determinate of the actual value of the home; there is no need to do an interior inspection.
Fact: There are a multitude of different factors that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just examining the house from the outside.
Myth: Considering that the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal. Home buyers must be given a version of the report through request as per the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their appraisal so long as it meets the requirements of their lending company.
Fact: Only if consumers check out 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 a great deal of data contained in an appraisal report that will probably 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 area.
Myth: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending transactions.
Fact: Based upon their qualifications and designations, appraisers can and often do provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit 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. The job of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to assess the condition of the house and its main components, then create a report on these inspection.