Common myths about appraising

It is mandated by legal agencies that a real estate appraiser is required to be state-licensed to offer appraisals for federally-related property transactions in North Carolina. Also by law, you are allowed to receive a copy of the completed appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.

Myth: Market value needs to be similar to the assessed value of the property.

Fact: It is probable that North Carolina, like most states, validates the idea that the assessed value is the same as the market value; however, this is not always true. Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when houses in the area have not been reassessed for an extended period.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the value of the house will vary.

Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is conducted.

Myth: Market value should equate to replacement cost.

Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a house without being under pressure from any external party to buy or sell. If the house were reconstructed, the dollar amount needed to do so would be the replacement cost.

Myth: Appraisers use a formula, like a certain price per square foot, to come to the value of a property.

Fact: An appraisal is an amalgamation of data based on the home's size, location, proximity to specific facilities, the condition of the house and the worth of recent comparable sales. You can rely on Weaver Appraisal Group's appraisers to be ethical in assessing this data.

Myth: When the economy is strong and the sales prices of homes are found to be rising by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.

Fact: All appreciation of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes. It doesn't matter if the economy is doing well or declining.

Myth: The home's exterior is determinate of the actual worth of the home; there is no need to do an interior appraisal.

Fact: To conclude an accurate value beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply viewing the house from the outside.

Myth: Since you're the one paying for the appraisal when applying for the loan to purchase or refinance your home, you own the ordered 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. Because of the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be provided with one by their lending company.

Myth: It doesn't concern consumers what's in the report so long as it meets the requirements of their lender.

Fact: Only if consumers look over a copy of their appraisal report can they ensure its accuracy and possibly need to question the result. 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 incredible amount of information - including, but certainly 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 vicinity.