Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-backed purchases. Also by law, you are allowed to receive a copy of the finished appraisal report from your lender. Contact Crest Appraisal Services if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be the same as the market value.
Fact: While most states back the suggestion that assessed value is equal to estimated market value, this usually is not the case. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby properties are perfect examples of why the price can vary.
Myth: The value of a house will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The value of the property does not affect the salary of the appraiser; as a result, the appraiser has no personal interest in the cost of the house. This means that he will conduct task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement cost of the house is always is on par with the market value.
Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under duress to buy or sell. If the home were reconstructed, the dollar amount needed to do so would make up the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the cost of a property.
Fact: There are many varied processes that an appraiser will use to make a comprehensive investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable houses.
Myth: In a powerful economy - when the costs of houses in a given county are found to be rising by a particular percentage - the costs of individual houses in the vicinity can be expected to appreciate by that same percentage.
Fact: All increase of worth is on an individual basis, found by data on relevant considerations and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in King County or Seattle, WA?Contact Crest Appraisal Services
Myth: The home's outside is determinate of the actual worth of the property; there is no need to do an interior inspection.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found just by examining the property from the exterior.
Myth: Since you're the one providing the money for the appraisal when applying for the loan to purchase or refinance real estate, you own the produced appraisal report.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a version of the document upon written request as per the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even care about what the appraisal report contains so long as their lender is satisfied.
Fact: A home buyer should definitely look through their appraisal; there could be some questions or some concerns about 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. There is a wealth of information contained in an report that can be useful to the consumer in the future, such as 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 worth assessed in a lender sales transaction.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a multitude of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is the same as a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal. The reason behind an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will write a report that will show the condition of the house and its major components and possible damage.