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Appraisal myths debunked

Legally, an appraiser must be state certified to perform substantiated appraisal reports for federally-backed sales. You have the ability to acquire a copy of the finished appraisal from your lending agency. 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 back the idea that assessed value equates estimated market value, this generally is not the case. Usually when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Weston/Ft. Lauderdale have not been reassessed for a good length of time, it may vary wildly.

Myth: The appraised value of a house will be different depending upon whether the appraisal is conducted for the buyer or the seller.

Fact: The appraiser has no vested interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written.

Myth: The replacement cost of the house should be is on par with the market value.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a certain property, with neither being under undue influence to buy or sell. Replacement value is the dollar amount needed to reconstruct a house in-kind.

Myth: Appraisers use a formula, such as a specific price per square foot, to arrive at the worth of a house.

Fact: There are many different methods that an appraiser will use to make a full analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable houses.

Myth: In a powerful economy - when the sales prices of properties in a given area are found to be rising by a particular percentage - the worth of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: Value appreciation of a specific house has to be concluded on a case-by-case basis, factoring in data on comparable properties and other relevant elements. It doesn't matter if the economy is doing well or declining.

Have other questions about appraisers, appraising or real estate in Broward County or Weston/Ft. Lauderdale, FL?

Contact DANIEL I KANDEL

Myth: The home's exterior is determinate of the actual value of the house; it is unnecessary to do an interior inspection.

Fact: There are a multitude of different factors that determine the value of a home; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by inspecting the property from the outside.

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: The report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the document. Home buyers must be supplied with a copy of the appraisal report through request as per the Equal Credit Opportunity Act.

Myth: It doesn't mean anything to consumers what's in the appraisal so long as it satisfies the necessities of their lender.

Fact: A consumer should definitely read through their document; there could be some questions or some worries with the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an appraisal that will probably be useful to the home buyer in the future, such as 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 region.

Myth: The only reason someone would hire an appraiser is if a house needs its price assessed in a lender-based sales transaction.

Fact: Depending upon their qualifications and designations, appraisers can and may perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal report is no different than a home inspection report.

Fact: Appraisal reports are definitely not the same as a home inspection report. The job of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. A home inspector determines the condition of the building and its major components and reports these findings.