Appraisal myths debunked
Legally, a real estate appraiser has to be state certified to produce legitimate real estate appraisals for federally-related sales. Also by law, you have the ability to request a copy of the finished report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: Market value has to be similar to the assessed value of the property.
Fact: It is probable that Arizona, like most states, supports the idea that the assessed value is the same as the market value; however, this is not always true. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an prolonged period.
Myth: The buyer or the seller will have some pull in the cost of the home depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the pay of the appraiser; as such, the appraiser has no personal interest in the opinion of value of the property. Obviously, he will conduct task with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the house.
Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a home without being under influence from any external party to purchase or sell. The dollar amount required to rebuild a house is what constitutes the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the cost of a home.
Fact: There are many numerous ways that an appraiser will use to make a comprehensive analysis of every factor pertaining to the home, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable houses.
Myth: In a powerful economy - when the costs of properties in a given neighborhood are found to be appreciating by a particular percentage - the worth of individual homes in the vicinity can be expected to appreciate by that same percentage.
Fact: All appreciation of price is on an individual basis, concluded by information on relevant considerations and the data of comparable houses. 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 home's outside is determinate of the actual value of the house; it is unnecessary to do an interior inspection.
Fact: Home value is concluded by a number of variables, including area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information necessary.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal report. However, consumers have to be supplied with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their document so long as it meets the requirements of their lending group.
Fact: Only if consumers look over a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, containing an exorbitant amount of data - 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.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the worth of a home during a sales transaction involving a lending institution.
Fact: Based upon their qualifications and designations, appraisers can and will provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The job of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. The job of a home inspector is to find the condition of the property and its main components, then create a report on these inspection.