Common myths about appraising
By law, an appraiser must be state-licensed to offer appraisals for federally-backed transactions. You have the ability to receive a copy of the completed appraisal report from your lender. Contact Saxton Appraisals, Inc. if you have any concerns about the appraisal process.
Myth: Assessed value should always be equal to market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an prolonged period.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the opinion of value of the property will vary.
Fact: The cost of the property does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the house. This means that he will conduct task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement cost of the home is always is on par with the market value.
Fact: The way market value is derived is based on what a home buyer would likely pay a willing seller for a house without being under duress from any external party to buy or sell. Replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the ways appraisers use to arrive at the cost of a home.
Fact: An appraisal report is an assertion of data concluded from the home's size, location, proximity to certain facilities, the condition of the property and the worth of recent comparable sales. You can count on Saxton Appraisals, Inc.'s appraisers to be forthright in assessing this data.
Myth: When the economy is robust and the worth of houses are reported to be rising by a certain percentage, the other homes in the area can be expected to appreciate based on that same percentage.
Fact: Any price at which an appraiser concludes in regards to a particular house is always individualized, based on certain factors pulled from the information of comparable properties and other considerations within the home itself. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Douglas County or Omaha, NE?Contact Saxton Appraisals, Inc.
Myth: The property's outside is determinate of the actual price of the house; it is unnecessary to do an interior inspection.
Fact: To find an accurate price beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived simply by viewing the home from the outside.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their property, they legally own their appraisal.
Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the report. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with it by their lending company.
Myth: It doesn't matter to consumers what's in the report so long as it meets the necessities of their lender.
Fact: A consumer should definitely inspect their appraisal; there will probably be some questions or some concerns 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. An appraisal report can double as a record for the future, as it contains an exorbitant amount of information - including, but certainly 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 proximity.
Myth: The only reason someone would order an appraisal is if a house needs its price estimated in a lender sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and do perform a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser forms an opinion of value in the appraisal process and resulting report. The task of a home inspector is to determine the condition of the property and its main components, then produce a report on their findings.