Appraisal myths debunked
Legally, an appraiser is required to be state certified to write substantiated real estate appraisals for federally-supported purchase. The law gives you the right to receive a copy of your finished appraisal report from your lending agency after it has been provided. Contact Nordquist Appraisal LLC if you have any questions about the appraisal process.
Myth: The value that is ascertained by the appraiser must be the same as the market value.
Fact: It is probable that Pennsylvania, like most states, supports the suggestion that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby properties are prime examples of why there might be a differential in price.
Myth: The buyer or the seller will have impact in the value of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the result of the report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property will be is on par with the market value.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific property. Replacement cost is the dollar amount required to rebuild a property in-kind.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a property, such as the price per square foot.
Fact: There are many different processes that an appraiser will use to make a detailed investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable properties.
Myth: When the economy is on the rise and the worth of properties are reported to be appreciating by a certain percentage, the other homes in the area can be expected to appreciate based on that same percentage.
Fact: Cost increase of a specific home has to be determined on a case-by-case basis, factoring in data on comparable homes and other relevant considerations. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Allegheny County or Pittsburgh, PA?Contact Nordquist Appraisal LLC
Myth: The home's exterior is determinate of the actual price of the home; there is no need to do an interior appraisal.
Fact: There are a number of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by inspecting the house from the exterior.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance real estate, they legally own their appraisal.
Fact: Legally, the document is owned by the lender unless the lender relinquishes their interest in the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be provided with one by their lending company.
Myth: Consumers need not care about what is in their appraisal so long as it satisfies the needs of their lending company.
Fact: It is almost imperative for consumers to peruse a copy of their appraisal so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable record for future reference, filled with helpful and often-revealing information - including 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 hire an appraiser unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lending agency.
Fact: Appraisers can have many different qualifications and designations which allow them to provide 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: You don't need to get an appraisal if you order a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. A home inspector assesses the condition of the home and its major components and reports these findings.