Appraisal myths & facts

Legally, an appraiser must be state certified to perform substantiated real estate appraisals for federally-related transactions. The law allows you to get a copy of your finished appraisal report from your lender after it has been provided. Contact our professional staff if you have any concerns about the appraisal process.

Myth: The value that is assessed by the appraiser should be the same as the market value.

Fact: It is probable that Washington, like most states, supports the common myth that the assessed value is the same as the market value; however, this is not often the case. Generally when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Seattle have not been reassessed for a good length of time, it may vary wildly.

Myth: The appraised value of a property will differ depending upon if the appraisal is produced for the buyer or the seller.

Fact: The cost of the house does not affect the salary of the appraiser; because of this, the appraiser has no vested interest in the worth of the home. What this means is he will complete his task with impartiality and independence regardless for whom the appraisal is provided.

Myth: Any time market value is established, it should equal the replacement cost of the house.

Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a home without being under duress from any external party to purchase or sell. Replacement value is the dollar amount needed to reconstruct a home in-kind.

Myth: There are specific methods that appraisers use to determine the value of a property, like the price per square foot.

Fact: Appraisers complete a full analysis of all factors in consideration to the cost of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

Myth: In a powerful economy - when the prices of houses in a given area are found to be increasing by a certain percentage - the values of individual houses in the proximity can be expected to rise by that same percentage.

Fact: Any value at which an appraiser concludes concerning a particular home is always personalized, based on certain factors pulled from the information of comparable houses and other specifications within the house itself. This is true in strong economic times as well as poor.

Myth: The home's exterior is determinate of the actual value of the home; it is unnecessary to do an interior inspection.

Fact: There are a multitude of different variables that determine property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the data required.

Myth: Because the consumer is the one who provides 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: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a copy of the appraisal report upon written request because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the necessities of their lender.

Fact: A home buyer should definitely read through their report; there might be some questions or some worries with the accuracy of the inspection that must be addressed. 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, 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 proximity.