Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-related sales. Also by law, you have the ability to receive a copy of the finished report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value should be the same as the assessed value of the property.
Fact: While most states uphold the idea that assessed value is the same as estimated market value, this generally is not the case. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Camden have not been reassessed for quite some time, it may vary wildly.
Myth: The opinion of value of a property will differ depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The price of the property does not affect the pay of the appraiser; as such, the appraiser has no personal interest in the cost of the house. Obviously, he will render task with impartiality and independence regardless for whom the appraisal is produced.
Myth: Market value should be the same as replacement cost.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain home, with neither being under undue influence to buy or sell. Replacement value is the dollar amount necessary to rebuild a home in-kind.
Myth: Certain methods, like the price per square foot, are the ways appraisers use to determine the worth of a home.
Fact: Appraisers make a full analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: In a robust economy - when the prices of properties in a given county are found to be rising by a certain percentage - the worth of individual homes in the area can be expected to appreciate by that same percentage.
Fact: Value appreciation of a certain property is always concluded on an individualized basis, factoring in information on comparable properties and other relevant elements. It makes no difference whether the economy is excellent or bad.
Have other questions about appraisers, appraising or real estate in Benton County or Camden, TN?Contact us
Myth: The property'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 show property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by inspecting the home from the outside.
Myth: Considering that the consumer is the person who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. However, consumers have to be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their report so long as it exceeds the requirements of their lending agency.
Fact: A home buyer should definitely inspect their document; there may be some questions or some worries with the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, containing a great deal of information - 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 area.
Myth: The only reason someone would order an appraisal is if a property needs its cost estimated in a lender-based sales transaction.
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: There's no reason to get an appraisal if you have had a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. A home inspector determines the condition of the home and its major components and reports their findings.