Appraisal myths debunked

Legally, an appraiser is required to be state certified to produce substantiated real estate appraisals for federally-related purchase. Also by law, you are entitled to receive a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal process.

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

Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Pittsburgh have not been reassessed for quite some time, it may vary wildly.

Myth: Depending on whether the appraisal is written for the buyer or the seller, the appraised value of the house will vary.

Fact: The price of the property does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the worth of the home. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is provided.

Myth: The replacement cost of the property should be is on par with the market value.

Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under influence from any outside group to buy or sell. The dollar amount required to rebuild a home is what constitutes the replacement cost.

Myth: Specific formulae, such as the price per square foot, are what appraisers use to determine the worth of a house.

Fact: An appraisal report is an amalgamation of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can rely on Nordquist Appraisal LLC's appraisers to be honest in assessing this information.

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

Fact: Any value at which an appraiser concludes in regards to a certain house is always individualized, based on certain factors found from the data of comparable homes and other specifications within the home itself. It doesn't matter if the economy is doing well or declining.

Have other questions about appraisers, appraising or real estate in Allegheny County or Pittsburgh, PA?

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Myth: You can commonly tell what a property is worth simply by looking at the outside.

Fact: There are a number of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived just by viewing the house from the exterior.

Myth: Considering that the consumer is the party who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.

Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the report. However, consumers have to be given a copy of the appraisal upon written request, due to the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the requirements of their lending company.

Fact: Only if home buyers read a copy of their appraisal can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an excellent record for future reference, filled with useful and often-revealing data - 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.

Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending agency.

Fact: Appraisers can have many varied qualifications and designations which allow them to perform a lot of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: A home inspection serves the same purpose as an appraisal.

Fact: An appraisal does not fulfill the same purpose as an inspection report. The appraiser finds an opinion of value in the appraisal process and resulting report. House inspectors will create a report that will express the condition of the house and its major components and possible damage.