Common myths about appraising
It is mandated by legal agencies that an appraiser needs to be state-licensed to perform appraisal reports for federally-supported home sales in Tennessee. Also by law, you are allowed to receive a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be exactly the same as the market value.
Fact: While most states support the suggestion that assessed value is equal to estimated market value, this usually is not the case. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby homes are excellent examples of why this occurs.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the value of the home will vary.
Fact: The cost of the property does not affect the payment of the appraiser; due to this, the appraiser has no pressured interest in the cost of the property. This means that he will complete his task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the home will be is on par with the market value.
Fact: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific property. If the home were reconstructed, the dollar amount needed to do so would set the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to figure out the worth of a property.
Fact: There are many numerous formulae that an appraiser will use to make a detailed analysis of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the worth of recently sold comparable houses.
Myth: As houses appreciate by a specific percentage - in a robust economic state - the properties in proximity are figured to appreciate by the same amount.
Fact: Value appreciation of a certain house is always determined on an individualized basis, factoring in data on comparable homes and other relevant considerations. It makes no difference whether the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Benton County or Camden, TN?Contact Furr Appraisal Service
Myth: You can usually tell what a house is worth simply by looking at the outside.
Fact: To determine an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. An external inspection obviously can't provide all of the information required.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be provided with it by their lending agency.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the needs of their lender.
Fact: It is almost imperative for home buyers to check over a copy of their appraisal report 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. An appraisal can double as a record for the future, as it contains an incredible amount of information - including, but certainly 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: There is no reason to order an appraisal unless you are trying to get an estimate 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 variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal report. The function of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal. The task of a home inspector is to determine the condition of the house and its major components, then produce a report on their conclusions.