Appraisal myths & facts
It is enforced by the government that an appraiser needs to be state-licensed to produce appraisal reports for federally-supported home purchases in Florida. You have the ability to receive a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value generally will be similar to to market value.
Fact: It is possible that Florida, like most states, validates the idea that the assessed value equates to the market value; however, this is not often the case. There are times when interior remodeling has been done and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller can have leverage in the cost of the home depending upon for whom the appraiser is working.
Fact: There is no vested interest on the part of the appraiser in the outcome of the report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is created.
Myth: Any time market value is established, it should be similar to the replacement cost of the property.
Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a house without being under influence from any outside party to purchase or sell. If the property were rebuilt, the dollar amount necessary to do so would set the replacement cost.
Myth: There are certain methods that real estate appraisers use to find the opinion of value of a property, such as the price per square foot.
Fact: Appraisers make an exhaustive analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent costs of comparable properties.
Myth: As houses appreciate by a specific percentage - in a robust economic state - the homes around the appreciating properties are figured to appreciate by the same amount.
Fact: Worth appreciation of a certain property must be determined on an individualized basis, factoring in data on comparable houses and other relevant specifications within the house itself. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Broward County or Weston/Ft. Lauderdale, FL?Contact our professional staff
Myth: Just looking at what the property looks like on its exterior gives an excellent idea of its value.
Fact: To determine an accurate value beyond all doubt, an appraiser must assess the home on a variety of factors based on 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 funding for the appraisal report when applying for your loan to purchase or refinance real estate, you own the produced appraisal.
Fact: The appraisal report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. Consumers must be given a version of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the report so long as it meets the needs of their lending agency.
Fact: Only if consumers read a copy of their report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information stored in an report that could be useful to the consumer 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the worth of a property during a sales transaction involving a lending company.
Fact: Depending upon their qualifications and designations, appraisers can and do perform a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you order a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal. The function of an appraisal is to find an opinion of fair market value during the appraisal process and the completion of the appraisal. A home inspector assesses the condition of the house and its major components and reports these findings.