Appraisal myths & facts
By law, an appraiser must be state-licensed to perform appraisals for federally-backed purchases. Also by law, you have the right to request a copy of the completed appraisal from your lending agency. Contact us if you have any concerns about the appraisal procedure.
Myth: Market value should be similar to the assessed value of the property.
Fact: It might be that Oregon, like most states, supports the idea that the assessed value equals the market value; however, this is not often the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the Milwaukie have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is written for the buyer or the seller, the opinion of value of the home will vary.
Fact: The appraiser has no personal interest in the result of the appraisal and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the property will be is on par with the market value.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a property without being under influence from any external group to buy or sell. The dollar amount required to rebuild a property is what forms the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a property, such as the price per square foot.
Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to some facilities, the condition of the property and the worth of recent comparable sales. You can depend on Willamette Valley Appraisal Professionals's staff to be honest in assessing this data.
Myth: As houses appreciate by a specific percentage - in a robust economic state - the homes around the appreciating properties are figured to increase by the same amount.
Fact: Any price at which an appraiser concludes in regards to a specific property is always personalized, based on certain factors concluded from the information of comparable properties and other considerations within the property itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Clackamas County or Milwaukie, OR?Contact Willamette Valley Appraisal Professionals
Myth: You can usually find what a property is worth simply by looking at the outside.
Fact: Home worth is determined by a number of variables, including area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived simply by examining the home from the outside.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to buy or refinance your house, you own the produced appraisal report.
Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending agency that purchased the appraisal. Home buyers must be supplied with a version of the report through request because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lending agency is fine with the contents therein.
Fact: It is very important for home buyers to read a copy of their appraisal so that they can double-check the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal that should be useful to the home buyer 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a property needs its cost estimated in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and will provide a multitude 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: Appraisal reports are completely different than a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. House inspectors will create a report that will show the condition of the house and its major components and possible damage.