Common myths about appraising
Legally, a real estate appraiser has to be state certified to create substantiated appraisal reports for federally-related sales. You also have the right to acquire a copy of the completed report from your lender. Contact Willamette Valley Appraisal Professionals if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be equivalent to the market value.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. At times when interior remodeling has occurred and the assessor is not aware of the improvement or properties in the area have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller will have an influence in the cost of the house depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the outcome of the report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Market value will approximate replacement cost.
Fact: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. If the property were reconstructed, the dollar amount needed to do so would be the replacement cost.
Myth: There are specific methods that appraisers use to determine the cost of a property, like the price per square foot.
Fact: There are many different formulae that an appraiser will use to make an in-depth investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable houses.
Myth: As homes increase their worth by a specific percentage - in a strong economy - the homes around the appreciating properties are expected to appreciate by the same amount.
Fact: All increase of worth is on a one-on-one basis, found by information on relevant considerations and the data of comparable homes. 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: Just looking at what the property looks like on the outside gives an idea of its worth.
Fact: To find an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the data required.
Myth: Since you're the one funding for the appraisal when applying for the loan to purchase or refinance your house, you own the provided appraisal.
Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be given it by their lender.
Myth: Home buyers need not be concerned with what is in their appraisal document so long as it meets the requirements of their lending agency.
Fact: It is almost imperative for home buyers to look at a copy of their report so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing an exorbitant amount of information - 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.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the worth of a property during a sales transaction involving a lender.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You shouldn't need to get an appraisal if you get a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal report. House inspectors will produce a report that will determine the condition of the home and its major components and possible damage.