Appraisal myths & facts
Legally, an appraiser is required to be state certified to create substantiated real estate appraisals for federally-supported transactions. The law entitles you to receive a copy of your finished appraisal report from your lending agency after it has been produced. 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: It could be that Nebraska, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not always true. 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 quite some time, it may vary wildly.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no personal interest in the outcome of the appraisal and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement value of the property is always is on par with the market value.
Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property. Replacement cost is the dollar amount required to rebuild a house in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to arrive at the value of a house.
Fact: Appraisers make an exhaustive analysis of all factors pertaining to the price of a home, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: In a robust economy - when the values of homes in a given neighborhood are found to be rising by a certain percentage - the worth of individual homes in the proximity can be expected to appreciate by that same percentage.
Fact: All increase of worth is on a case-by-case basis, determined by data on relevant considerations and the data of comparable properties. It makes no difference if the economy is good or on the decline.
Have other questions about appraisers, appraising or real estate in Douglas County or Omaha, NE?Contact Saxton Appraisals, Inc.
Myth: Just examining what the house looks like on the outside gives an excellent idea of its cost.
Fact: To conclude an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by inspecting the property from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their home, they legally own their appraisal.
Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the document. Home buyers must be provided with a copy of the report through request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the requirements of their lending agency.
Fact: Only if home buyers examine a copy of their appraisal report 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. Also, the appraisal makes a valuable record for future reference, filled with useful and often-revealing data - including 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: Appraisers are hired only to estimate real estate property values in home sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are completely different than a home inspection report. The job of the appraiser is to come to an opinion of value in the appraisal process and through writing the report. The purpose of a home inspector is to assess the condition of the property and its major components, then write a report on these conclusions.