Appraisal myths debunked

By law, an appraiser must be state-licensed to offer appraisals for federally-backed sales. You also have the right to acquire a copy of the completed appraisal from your lender. Contact Weaver Appraisal Group if you have any questions about the appraisal procedure.

Myth: Market value must be the same as the assessed value of the property.

Fact: While most states uphold the idea that assessed value approximates estimated market value, this commonly is not the case. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby properties are prime examples of why the price can vary.

Myth: The buyer or the seller can have an influence in the value of the property 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 appraisal report, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is conducted.

Myth: Market value should equate to replacement cost.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a particular house, with neither being under pressure to buy or sell. If the home were reconstructed, the dollar amount required to do so would set the replacement cost.

Myth: Certain formulae, like the price per square foot, are what appraisers use to ascertain the worth of a home.

Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can depend on Weaver Appraisal Group's appraisers to be honest in assessing this information.

Myth: As homes appreciate by a specific percentage - in a robust economy - the homes nearby are figured to increase by the same amount.

Fact: Any price at which an appraiser concludes in regards to a certain home is always individualized, based on certain factors found from the information of comparable houses and other considerations within the house itself. It doesn't matter if the economy is on the rise or declining.

Myth: The property's outside is determinate of the actual value of the property; it is unnecessary to do an interior appraisal.

Fact: To find an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data necessary.

Myth: Since you're the one paying for the appraisal report when applying for your loan to purchase or refinance your home, you own the ordered appraisal.

Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the document. Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the report must be given it by their lending company.

Myth: Home buyers need not be concerned with what is in their document so long as it satisfies the needs of their lending group.

Fact: A home buyer should definitely look through their appraisal; there may be some questions or some worries with the accuracy of the report 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 report that should be useful to the consumer 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 region.