Common myths about appraising
Legally, an appraiser needs to be state certified to create legitimate real estate appraisals for federally-related purchase. The law gives you the right to acquire a copy of your completed appraisal report from your lending agency after it has been produced. Contact Nordquist Appraisal LLC if you have any concerns about the appraisal process.
Myth: Market value should be the same as the assessed value of the property.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is unaware of and a lack of reassessment on nearby homes are excellent examples of why there might be a differential in price.
Myth: The buyer or the seller will have impact in the value of the house 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 analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: The replacement cost of the house should be is on par with the market value.
Fact: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. The dollar amount necessary to reconstruct a property is what forms the replacement cost.
Myth: There are certain methods that real estate appraisers use to find the opinion of value of a property, like the price per square foot.
Fact: An appraisal is an assertion of information based on the home's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can rely on Nordquist Appraisal LLC's staff to be forthright in assessing this data.
Myth: In a robust economy - when the prices of homes in a given neighborhood are found 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: Any cost at which an appraiser arrives concerning a particular property is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the house itself. It makes no difference whether the economy is good or poor.
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Myth: Just seeing what the house looks like on its exterior gives a good idea of its worth.
Fact: Home worth is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just inspecting the property from the outside.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their property, they own their appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the document. By the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be given it by their lender.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it satisfies the necessities of their lender.
Fact: A consumer should definitely look through their report; there will probably be some questions or some worries with the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, containing 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lending company.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't need to get an appraisal if you get a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. House inspectors will create a report that will explain the condition of the home and its major components and possible damage.