Appraisal myths debunked

Legally, an appraiser is required to be state certified to write legitimate appraisal reports for federally-related sales. You have the ability to request a copy of the finished appraisal report from your lender. Contact Walz Appraisal if you have any concerns about the appraisal process.

Myth: Assessed value generally will be the same as to market value.

Fact: This usually isn't true; most states do support the idea 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 the price can vary.

Myth: Depending on if the appraisal is written for the buyer or the seller, the cost of the house will vary.

Fact: The appraised value of the home does not affect the salary of the appraiser; due to this, the appraiser has no pressured interest in the cost of the house. Obviously, he will provide services with impartiality and independence regardless for whom the appraisal is provided.

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

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under undue influence to buy or sell. If the property were rebuilt, the dollar amount necessary to do so would form the replacement cost.

Myth: Specific formulae, like the price per square foot, are the methods appraisers use to come to the worth of a house.

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

Myth: In a robust economy - when the worth of houses in a given county are reported to be increasing by a particular percentage - the values of individual properties in the area can be expected to increase by that same percentage.

Fact: All appreciation of value is on a case-by-case basis, determined by information on relevant considerations and the data of comparable homes. It doesn't matter if the economy is doing well or declining.

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

Fact: To find an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these factors can be derived simply by viewing the house from the outside.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal report.

Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal. However, home buyers have to be provided with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.

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

Fact: Only if home buyers examine a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, as it contains an incredible amount of 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 vicinity.

Myth: Appraisals are ordered only to assess house values in house sales involving mortgage-lending transactions.

Fact: Appraisers can have many varied qualifications and designations which allow them to perform a lot 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 don't need to get an appraisal if you get a home inspection.

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