Appraisal myths debunked

Legally, a real estate appraiser is required to be state certified to perform substantiated real estate appraisals for federally-supported purchase. The law entitles you to get a copy of your completed report from your lender after it has been provided. Contact Saxton Appraisals, Inc. if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser should be equivalent to the market value.

Fact: While most states support the idea that assessed value equates estimated market value, this usually is not the case. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are prime examples of why the price can vary.

Myth: The value of a property will vary depending upon if the appraisal is conducted for the buyer or the seller.

Fact: The opinion of value of the home does not affect the payment of the appraiser; as a result, the appraiser has no preconceived interest in the cost of the property. Obviously, he will complete his business with impartiality and objectivity regardless for whom the appraisal is provided.

Myth: Market value will approximate replacement cost.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a particular house, with neither being under duress to buy or sell. Replacement cost is the dollar amount needed to reconstruct a home in-kind.

Myth: There are certain methods that real estate appraisers use to find the opinion of value of a house, such as the price per square foot.

Fact: An appraisal report is a collection of information based on the house's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can depend on Saxton Appraisals, Inc.'s appraisers to be forthright in assessing this information.

Myth: As houses increase their worth by a specific percentage - in a robust economic state - the houses within the same neighborhood are expected to appreciate by the same amount.

Fact: Any worth at which an appraiser arrives concerning a specific property is always personalized, based on certain factors concluded from the data of comparable houses and other considerations within the property itself. This is true in strong economic times as well as poor.

Myth: Just seeing what the property looks like on its exterior gives a good idea of its worth.

Fact: To determine an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from just viewing the home from the exterior.

Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their house, they legally own their appraisal report.

Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal. However, home buyers must be given a copy of the document upon written request, due to the Equal Credit Opportunity Act.

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

Fact: A consumer should definitely read through their appraisal; there will probably be some questions or some worries about the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal 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 area.