Appraisal myths debunked
By law, an appraiser is required to be state-licensed to offer appraisals for federally-supported transactions. You have the ability to acquire a copy of the finished report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should be similar to to market value.
Fact: While most states uphold the suggestion that assessed value approximates estimated market value, this usually is not the case. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby properties are prime examples of why the price can vary.
Myth: The buyer or the seller may have an influence in the value of the home depending upon for whom the appraiser is working.
Fact: The appraised value of the house 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 job with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement cost of the home will be is on par with the market value.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under influence from any external party to buy or sell. Replacement cost is the dollar amount necessary to rebuild a house in-kind.
Myth: There are specific methods that appraisers use to find the opinion of value of a house, such as the price per square foot.
Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can rely on Nordquist Appraisal LLC's staff to be honest in assessing this data.
Myth: As properties appreciate by a specific percentage - in a strong economy - the homes nearby are expected to increase by the same amount.
Fact: All appreciation of worth is on a one-on-one basis, concluded by information on relevant considerations and the data of comparable homes. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Allegheny County or Pittsburgh, PA?Contact us
Myth: Just looking at what the property looks like on the outside gives a good idea of its cost.
Fact: House worth is concluded by a number of variables, including area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just inspecting the house from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their home, they legally own their appraisal report.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. Under the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be given one by their lender.
Myth: Consumers need not be concerned with what is in their appraisal so long as it exceeds the requirements of their lending agency.
Fact: It is a very good idea for home buyers to look at a copy of their appraisal report so that they can double-check 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. There is a great deal of data stored in an appraisal 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.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a home during a sales transaction involving a lending company.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a multitude 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: You shouldn't need to get an appraisal if you get a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. An appraiser decides upon an opinion of value in the appraisal process and resulting report. House inspectors will create a report that will determine the condition of the home and its major components and possible damage.