Appraisal myths & facts
Legally, an appraiser needs to be state certified to write legitimate real estate appraisals for federally-related transactions. Also by law, you are allowed to receive a copy of the completed appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value should equate 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. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the Escondido have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller can have impact in the cost of the home depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the outcome of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the house is always is on par with the market value.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property. The dollar amount demanded to reconstruct a property is what forms the replacement cost.
Myth: Certain methods, such as the price per square foot, are what appraisers use to ascertain the price of a home.
Fact: There are many differing processes that an appraiser will use to make a full investigation of every factor pertaining to the property, such as the size, location, condition, how close it is to specific facilities and the sales price of recently sold comparable homes.
Myth: As houses appreciate by a certain percentage - in a robust economy - the properties in proximity are figured to increase by the same amount.
Fact: All increase of value is on a one-on-one basis, found by information on relevant considerations and the data of comparable houses. This is true in strong economic times as well as poor.
Have other questions about appraisers, appraising or real estate in San Diego County or Escondido, CA?Contact The Appraisal Firm
Myth: You can often find what a property is worth simply by looking at the outside.
Fact: To determine an accurate worth beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply viewing the property from the outside.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to purchase or refinance your house, you own the provided appraisal report.
Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal. Home buyers have to be supplied with a copy of the report upon written request because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even concern themselves with what the appraisal contains so long as their lending institution is satisfied.
Fact: Only if consumers look at a copy of their appraisal can they double-check 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 appraisal makes an excellent record for future reference, containing 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending company.
Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. A home inspector assesses the condition of the building and its major components and reports their findings.