Appraisal myths & facts
It is enforced by the government that a real estate appraiser needs to be state-licensed to produce appraisal reports for federally-supported property transactions in Oregon. Also by law, you are allowed to demand a copy of the completed appraisal from your lender. Contact Willamette Valley Appraisal Professionals if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser will be the same as the market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby properties are excellent examples of why this occurs.
Myth: The appraised value of a property will change depending upon if the appraisal is produced for the buyer or the seller.
Fact: The appraiser has no personal interest in the outcome of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the home is always is on par with the market value.
Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under duress from any external group to buy or sell. If the property were reconstructed, the dollar amount necessary to do so would make up the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to come to the worth of a house.
Fact: Appraisers make an exhaustive analysis of all factors pertaining to the worth of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.
Myth: In a robust economy - when the worth of properties in a given county are reported to be increasing by a particular percentage - the costs of individual properties in the area can be expected to rise by that same percentage.
Fact: All appreciation of value is on an individual basis, concluded by information on relevant considerations and the data of comparable homes. This is true in good economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Clackamas County or Milwaukie, OR?Contact Willamette Valley Appraisal Professionals
Myth: Just examining what the house looks like on its exterior gives an excellent idea of its worth.
Fact: To determine an accurate price beyond all doubt, an appraiser must inspect the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection certainly can't provide all of the data necessary.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their home, they own their appraisal.
Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the report. Consumers must be given a version of the appraisal report through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it meets the needs of their lending group.
Fact: It is a very good idea for consumers to peruse a copy of their report so that they can verify the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, containing helpful 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 area.
Myth: Appraisals are ordered only to assess home values in house sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and do perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection.
Fact: An appraisal does not fulfill the same purpose as an inspection. An appraiser forms an opinion of value in the appraisal process and resulting report. A home inspector analyzes the condition of the home and its main components and reports their findings.