Appraisal myths debunked
Legally, an appraiser has to be state certified to perform substantiated real estate appraisals for federally-backed purchase. The law entitles you to acquire a copy of your completed appraisal from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value will always be similar to to market value.
Fact: While most states back the concept that assessed value is the same as estimated market value, this usually is not the case. Often when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the Cordova have not been reassessed for a good length of time, it may vary wildly.
Myth: The value of a house will vary depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value will equal replacement cost.
Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a specific property, with neither being under undue influence to buy or sell. The dollar amount demanded to rebuild a property is what shows the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to arrive at the worth of a property.
Fact: There are many differing formulae that an appraiser will use to make a detailed analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable properties.
Myth: When the economy is strong and the worth of properties are found to be appreciating by a certain percentage, the other houses in the vicinity can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser concludes in regards to a certain home is always personalized, based on certain factors pulled from the data of comparable properties and other specifications within the home itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Shelby County or Cordova, TN?Contact us
Myth: The home's exterior is determinate of the actual worth of the home; there is no need to do an interior appraisal.
Fact: Home worth is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply looking at the house from the exterior.
Myth: Since you're the one funding for the appraisal when applying for the loan to purchase or refinance real estate, you own the produced appraisal.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal. By the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be given it by their lending company.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the necessities of their lender.
Fact: A home buyer should definitely read through their document; there might be some questions or some worries with the accuracy of the inspection that need to be addressed. 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 could 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 area.
Myth: Appraisals are ordered only to estimate building values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a lot 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: There's no reason to get an appraisal if you order a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The function of an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the production of the report. House inspectors will compose a report that will express the condition of the property and its major components and possible damage.