Appraisal myths debunked
Legally, a real estate appraiser is required to be state certified to create substantiated real estate appraisals for federally-backed sales. You also have the right to request a copy of the finished appraisal report from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Market value will be the same as the assessed value of the property.
Fact: It is possible that Tennessee, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not often the case. At times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Camden have not been reassessed for a good length of time, it may vary wildly.
Myth: The value of a house will be different depending upon if the appraisal is produced for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: Market value should be the same as replacement cost.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under duress to buy or sell. Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific ways that appraisers use to find the cost 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 property, such as the size, location, condition, how close it is to specific facilities and the worth of recently sold comparable properties.
Myth: As houses appreciate by a specific percentage - in a strong economy - the houses nearby are figured to increase by the same amount.
Fact: All increase of price is on an individual basis, found by information on relevant conditions and the data of comparable properties. It doesn't matter if the economy is doing well or declining.
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 find an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by viewing the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they own their appraisal report.
Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. Home buyers must be given a version of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal so long as it satisfies the needs of their lending company.
Fact: Only if consumers examine a copy of their appraisal 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. Also, the report makes a near perfect record for future reference, comprised of useful and often-revealing 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: There is no reason to order an appraisal unless you are trying to get an estimate of the worth of a property during a sales transaction involving a lender.
Fact: Depending upon their qualifications and designations, appraisers can and may 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: Appraisal reports are completely different than a home inspection report. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. The job of a home inspector is to find the condition of the house and its main components, then create a report on their conclusions.