Common myths about appraising
It is mandated by legal agencies that an appraiser needs to be state-licensed to create appraisals for federally-related home transactions in Nebraska. You also have the right to receive a copy of the finished report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value should always be equal to market value.
Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Usually when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The opinion of value of a home will be different depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Any time market value is found, it should be the same as the replacement cost of the property.
Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. If the house were rebuilt, the dollar amount required to do so would make up the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to arrive at the worth of a home.
Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the worth of a house, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.
Myth: As homes increase their worth by a specific percentage - in a strong economic state - the properties around the appreciating properties are figured to increase by the same amount.
Fact: Any price at which an appraiser concludes in regards to a specific home is always individualized, based on certain factors derived from the information of comparable homes and other considerations within the house itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Douglas County or Omaha, NE?Contact Saxton Appraisals, Inc.
Myth: The home's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.
Fact: To conclude an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the information needed.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance your house, you own the ordered appraisal.
Fact: Legally, the document is owned by the lending agency unless the lender relinquishes their interest in the document. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be given it by their lender.
Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the requirements of their lender.
Fact: A home buyer should definitely look through their appraisal; there may be some questions or some concerns with the accuracy of the appraisal report that should be addressed. 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, since it contains an exorbitant amount of information - 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: Appraisals are ordered only to estimate real estate property values in house sales involving mortgage-lending transactions.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection report has a completely different purpose than an appraisal report. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report. House inspectors will compose a report that will determine the condition of the property and its major components and possible damage.