Common myths about appraising

It is mandated by law that an appraiser is required to be state-licensed to write appraisals for federally-supported home purchases in Wisconsin. Also by law, you are entitled to request a copy of the finished report from your lending agency. Contact Walz Appraisal if you have any questions about the appraisal procedure.

Myth: Market value will be equivocal to the assessed value of the property.

Fact: While most states uphold the suggestion that assessed value approximates estimated market value, this commonly is not the case. Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when properties in the area have not been reassessed for an prolonged time.

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

Fact: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is written.

Myth: The replacement value of the house is always is on par with the market value.

Fact: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount necessary to rebuild a house is what shows the replacement cost.

Myth: Certain methods, such as the price per square foot, are the ways appraisers use to come to the price of a house.

Fact: There are many different methods that an appraiser will use to make an in-depth investigation of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable homes.

Myth: When the economy is strong and the sales prices of houses are found to be rising by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.

Fact: Any cost at which an appraiser arrives in regards to a specific house is always individualized, based on certain factors pulled from the data of comparable homes and other specifications within the property itself. This is true in excellent economic times as well as bad.

Have other questions about appraisers, appraising or real estate in La Crosse County or Holmen, WI?

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Myth: The house's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.

Fact: There are a number of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the information required.

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

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. However, consumers must be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.

Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lending institution is fine with the contents therein.

Fact: It is a very good idea for consumers to look at a copy of their appraisal so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, comprised of useful 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: The only reason someone would order an appraisal is if a property needs its worth assessed in a lender-based sales transaction.

Fact: Depending upon their qualifications and designations, appraisers can and do perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

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

Fact: An appraisal does not serve the same purpose as an inspection report. The point of an appraisal report is to find an opinion of fair market value during the appraisal process and the production of the appraisal report. House inspectors will compose a report that will show the condition of the property and its major components and possible damage.