Appraisal myths debunked

By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-supported transactions. The law gives you the right to receive a copy of your completed appraisal from your lending agency after it has been provided. Contact us if you have any questions about the appraisal process.

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

Fact: It could be that , like most states, validates the idea that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby properties are excellent examples of why there might be a differential in price.

Myth: The opinion of value of a house will change depending upon if the appraisal is ordered for the buyer or the seller.

Fact: The cost of the home does not affect the payment of the appraiser; due to this, the appraiser has no preconceived interest in the opinion of value of the house. Obviously, he will render task with impartiality and independence regardless for whom the appraisal is produced.

Myth: Market value should equal replacement cost.

Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under duress to buy or sell. If the property were reconstructed, the dollar amount required to do so would form the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the worth of a property.

Fact: An appraisal report is an assertion of data concluded from the home's size, location, proximity to undesirable facilities, the condition of the property and the cost of recent comparable sales. You can rely on Ecklund Appraisals LTD's appraisers to be ethical in assessing this data.

Myth: In a robust economy - when the worth of homes in a given region are reported to be rising by a particular percentage - the costs of individual properties in the vicinity can be expected to rise by that same percentage.

Fact: All appreciation of value is on an individual basis, determined by data on relevant considerations and the data of comparable homes. This is true in good economic times as well as bad.

Myth: You can generally find what a home is worth simply by looking at the outside.

Fact: There are a number of different factors that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information required.

Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance your house, you own the provided appraisal report.

Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal. However, home buyers have to be provided with a copy of the report upon written request, under the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their appraisal so long as it exceeds the requirements of their lending institution.

Fact: A consumer should definitely inspect their appraisal report; there will probably be some questions or some concerns about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, since it contains a great deal 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 area.