Appraisal myths & factsBy law, an appraiser needs to be state-licensed to offer appraisals for federally-supported purchases. You have the ability to demand a copy of the finished report from your lender. Contact us if you have any concerns about the appraisal procedure. Myth: Market value will always be the same as the assessed value of the property.Fact: It is possible that New Jersey, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not always true. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an prolonged period of time. Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the appraised value of the home will vary.Fact: The price of the property does not affect the payment of the appraiser; due to this, the appraiser has no vested interest in the cost of the house. Obviously, he will provide job with impartiality and objectivity regardless for whom the appraisal is provided. Myth: The replacement cost of the home should be is on par with the market value.Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. The dollar amount required to reconstruct a property is what shows the replacement cost. Myth: There are specific methods that appraisers use to show the cost of a home, like the price per square foot.Fact: There are many differing ways that an appraiser will use to make a comprehensive analysis 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 homes. Myth: In a powerful economy - when the values of properties in a given neighborhood are reported to be increasing by a particular percentage - the prices of individual properties in the proximity can be expected to appreciate by that same percentage.Fact: Worth increase of a specific property has to be determined on an individualized basis, factoring in information on comparable properties and other relevant specifications within the house itself. This is true in good economic times as well as bad. Have other questions about appraisers, appraising or real estate in Union County or Princeton, NJ? Contact our professional staffMyth: Just looking at what the house looks like on the outside gives a good idea of its cost.Fact: There are a number of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data needed. Myth: Since you're the one paying for the appraisal when applying for your loan to purchase or refinance real estate, you own the produced appraisal report.Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the report. Home buyers must be given a version of the appraisal report upon written request due to the Equal Credit Opportunity Act. Myth: There's no reason for home buyers to even care about what the appraisal contains so long as their lending agency is fine with the contents therein.Fact: Only if home buyers 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. An appraisal report can double as a record for the future, containing a great deal 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: Appraisals are ordered only to estimate real estate property values in property sales involving mortgage-lending deals.Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning. Myth: An appraisal report is the same as a home inspection.Fact: Appraisal reports are nothing like a home inspection. The task of the appraiser is to come to an opinion of value in the appraisal process and through writing the report. The job of a home inspector is to approximate the condition of the house and its main components, then produce a report on their conclusions. |
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