Appraisal myths debunked
It is enforced by legal agencies that an appraiser needs to be state-licensed to write appraisals for federally-related property sales in California. The law allows you to acquire a copy of your completed report from your lender after it has been produced. Contact The Appraisal Firm if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser should be the same as the market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Usually when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Escondido have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller may have some pull in the value of the home depending upon for whom the appraiser is working.
Fact: The cost of the house does not affect the pay of the appraiser; as such, the appraiser has no pressured interest in the worth of the home. This means that he will render business with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Any time market value is established, it should be the same as the replacement cost of the property.
Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a property without being under duress from any outside group to buy or sell. Replacement cost is the dollar amount necessary to rebuild a property in-kind.
Myth: There are specific methods that appraisers use to show the opinion of value of a property, like the price per square foot.
Fact: There are many differing processes that an appraiser will use to make a comprehensive investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable properties.
Myth: When the economy is doing well and the value of homes are found to be rising by a certain percentage, the other houses in the proximity can be expected to rise based on that same percentage.
Fact: All increase of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable properties. It makes no difference if the economy is strong or bad.
Have other questions about appraisers, appraising or real estate in San Diego County or Escondido, CA?Contact The Appraisal Firm
Myth: Just seeing what the property looks like on its exterior gives an idea of its cost.
Fact: There are a multitude of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the data needed.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your house, you own the ordered appraisal report.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. However, home buyers must be provided with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even care about what the appraisal contains so long as their lending institution is satisfied.
Fact: A home buyer should definitely inspect their document; there may be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing an exorbitant 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 area.
Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal report. The purpose of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the home and its main components and reports these findings.