Appraisal myths debunked
It is mandated by the government that an appraiser must be state-licensed to create appraisal reports for federally-supported real estate transactions in Washington. You also have the right to request a copy of the finished appraisal from your lender. Contact Crest Appraisal Services if you have any questions about the appraisal procedure.
Myth: Assessed value generally will be the same as to market value.
Fact: It is possible that Washington, like most states, supports the idea that the assessed value is the same as the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby houses are exact examples of why there might be a differential in price.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the appraised value of the home will vary.
Fact: The appraiser has no personal interest in the outcome of the appraisal 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 pressure from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property. The dollar amount demanded to reconstruct a house is what forms the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a property.
Fact: There are many differing calculations that an appraiser will use to make a comprehensive analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the cost of recently sold comparable homes.
Myth: When the economy is strong and the value of homes are reported to be appreciating by a certain percentage, the other properties in the area can be expected to increase based on that same percentage.
Fact: Any cost at which an appraiser concludes in regards to a certain home is always personalized, based on certain factors pulled from the information of comparable homes and other specifications within the home itself. It makes no difference whether the economy is strong or bad.
Have other questions about appraisers, appraising or real estate in King County or Seattle, WA?Contact Crest Appraisal Services
Myth: Just examining what the property looks like on the outside gives an excellent idea of its value.
Fact: There are a multitude of different variables that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found simply by viewing the house from the outside.
Myth: Considering that the consumer is the person who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers must be given a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their appraisal report so long as it satisfies the requirements of their lending company.
Fact: A consumer should definitely read through their appraisal; there might be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, comprised of helpful and often-revealing 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 cost estimated in a lender sales transaction.
Fact: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't have to get an appraisal if you order a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The appraiser decides upon an opinion of value in the appraisal process and resulting report. The point of a home inspector is to assess the condition of the house and its main components, then compose a report on their conclusions.