Appraisal myths debunked

Legally, a real estate appraiser must be state certified to write substantiated real estate appraisals for federally-backed transactions. You are also entitled by law to request a copy of the finished appraisal from your lender. Contact Tight & Right Real Estate Valuation if you have any concerns about the appraisal process.

Myth: The value that is ascertained by the appraiser is required to be equivalent to the market value.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the area have not been reassessed for years or more, it may vary wildly.

Myth: The buyer or the seller sometimes may have leverage in the cost of the property depending upon for whom the appraiser is working.

Fact: The opinion of value of the house does not affect the pay of the appraiser; because of this, the appraiser has no personal interest in the cost of the home. Obviously, he will provide job with impartiality and independence regardless for whom the appraisal is created.

Myth: Any time market value is found, it should equate to the replacement cost of the home.

Fact: Without any suggestion from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house. If the property were reconstructed, the dollar amount needed to do so would set the replacement cost.

Myth: There are certain ways that real estate appraisers use to find the cost of a house, like the price per square foot.

Fact: An appraisal report is an assertion of data concluded from the home's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can rely on Tight & Right Real Estate Valuation's staff to be professional in assessing this information.

Myth: When the economy is on the rise and the worth of houses are found to be appreciating by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.

Fact: Any cost at which an appraiser arrives in regards to a particular house is always personalized, based on certain factors pulled from the information of comparable houses and other considerations within the house itself. This is true in excellent economic times as well as poor.

Myth: You can usually see what a house is worth simply by looking at the outside.

Fact: House value is determined by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived just by inspecting the property from the outside.

Myth: Since 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: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the document. However, consumers must be provided with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even care about what the appraisal report contains so long as their lender is satisfied.

Fact: A home buyer should definitely look through their appraisal report; there will probably be some questions or some concerns with the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since it contains a great deal 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.