Appraisal myths & facts
Legally, an appraiser must be state certified to write legitimate real estate appraisals for federally-related purchase. You also have the right to receive a copy of the completed report from your lending agency. Contact Saxton Appraisals, Inc. if you have any questions about the appraisal process.
Myth: Assessed value should always be the same as to market value.
Fact: While most states back the concept that assessed value approximates estimated market value, this commonly is not the case. Sometimes when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller can have leverage in the value of the property depending upon for whom the appraiser is working.
Fact: The appraised value of the home does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the house. This means that he will provide business with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Market value will equal replacement cost.
Fact: Without any pressure from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular house. The dollar amount needed to rebuild a home is what constitutes the replacement cost.
Myth: There are certain ways that appraisers use to determine the value of a house, such as the price per square foot.
Fact: Appraisers make a detailed analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable houses.
Myth: When the economy is robust and the sales prices of properties are found to be rising by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser concludes in regards to a particular property is always individualized, based on certain factors pulled from the data of comparable houses and other considerations within the home itself. It makes no difference if the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Douglas County or Omaha, NE?Contact Saxton Appraisals, Inc.
Myth: Just examining what the home looks like on its exterior gives a good idea of its cost.
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 viewing the house from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they legally own their appraisal.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be provided with it by their lending company.
Myth: Consumers need not care about what is in their appraisal so long as it meets the requirements of their lending agency.
Fact: A home buyer should definitely look through their appraisal report; there will probably be some questions or some concerns about the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, as it contains a great deal 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: The only reason someone would hire an appraiser is if a property needs its price assessed in a lender sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and do provide a series of 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 order a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. The task of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. A home inspector assesses the condition of the home and its main components and reports these findings.