Appraisal myths & facts
It is enforced by legal agencies that a real estate appraiser is required to be state-licensed to create appraisal reports for federally-related property purchases in Florida. Also by law, you are entitled to demand a copy of the finished appraisal report from your lender. Contact us if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.
Fact: While most states back the suggestion that assessed value is equal to estimated market value, this generally is not the case. Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an prolonged period of time.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no personal interest in the outcome of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement value of the house should be is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any outside party to buy or sell. The dollar amount required to rebuild a home is what forms the replacement cost.
Myth: Certain methods, like the price per square foot, are the ways appraisers use to arrive at the cost of a house.
Fact: An appraisal is an amalgamation of information concluded from the home's size, location, proximity to certain facilities, the condition of the house and the price of recent comparable sales. You can count on DANIEL I KANDEL's appraisers to be professional in assessing this information.
Myth: In a strong economy - when the values of houses in a given region are found to be appreciating by a particular percentage - the costs of individual houses in the vicinity can be expected to appreciate by that same percentage.
Fact: All appreciation of price is on a case-by-case basis, found by information on relevant considerations and the data of comparable properties. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Broward County or Weston/Ft. Lauderdale, FL?Contact us
Myth: Just seeing what the property looks like on its exterior gives a good idea of its cost.
Fact: Property value is concluded by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. As you can see, none of these things can be found simply by examining the property from the exterior.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their property, they legally own their appraisal.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. Consumers must be provided with a copy of the appraisal report through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal so long as it meets the necessities of their lending company.
Fact: Only if consumers read a copy of their appraisal 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. Also, the report makes a valuable record for future reference, containing useful and often-revealing data - including 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 estimate of the cost of a house during a sales transaction involving a lending company.
Fact: Based upon their qualifications and designations, appraisers can and do perform a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal. The purpose of an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the appraisal report. House inspectors will produce a report that will explain the condition of the property and its major components and possible damage.