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Appraisal myths & facts

Legally, an appraiser must be state certified to write legitimate appraisal reports for federally-related transactions. You also have the right to demand a copy of the completed appraisal from your lending agency. Contact DANIEL I KANDEL if you have any concerns about the appraisal procedure.

Myth: The value that is assessed by the appraiser is required to be exactly the same as the 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. Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby homes are exact examples of why the price can vary.

Myth: The buyer or the seller will have an influence in the value of the house depending upon for whom the appraiser is working.

Fact: The value of the property does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the house. What this means is he will conduct services with impartiality and objectivity regardless for whom the appraisal is created.

Myth: Market value should equate to replacement cost.

Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any external party to buy or sell. The dollar amount needed to rebuild a house is what shows the replacement cost.

Myth: Specific methods, like the price per square foot of the property, are the methods appraisers use to determine the price of a house.

Fact: An appraisal report is an amalgamation of information based on the house's size, location, proximity to certain facilities, the condition of the home and the value of recent comparable sales. You can depend on DANIEL I KANDEL's staff to be honest in assessing this information.

Myth: As houses increase their worth by a certain percentage - in a robust economic state - the properties nearby are figured to appreciate by the same amount.

Fact: All appreciation of price is on an individual basis, determined by information on relevant considerations and the data of comparable homes. 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?

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Myth: Just seeing what the property looks like on the outside gives an excellent idea of its worth.

Fact: To find an accurate worth beyond all doubt, an appraiser must inspect the property on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection certainly can't provide all of the data required.

Myth: Considering that the consumer is the one who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a copy of the appraisal report through request as per the Equal Credit Opportunity Act.

Myth: Consumers need not worry about what is in their appraisal document so long as it meets the requirements of their lending agency.

Fact: Only if consumers read a copy of their appraisal report 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. Also, the appraisal makes a near perfect record for future reference, containing helpful 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 vicinity.

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

Fact: Appraisers can have many different qualifications and designations which allow them to provide a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: An appraisal report is the same as a home inspection report.

Fact: An appraisal report does not fulfill the same purpose as an inspection. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. A home inspector determines the condition of the house and its major components and reports these findings.