Appraisal myths & facts
Legally, an appraiser has to be state certified to produce legitimate real estate appraisals for federally-backed sales. Also by law, you have the right to demand a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value should be the same as the assessed value of the property.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an prolonged period.
Myth: The appraised value of a property will be different depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The cost of the home does not affect the pay of the appraiser; due to this, the appraiser has no personal interest in the opinion of value of the home. This means that he will provide task with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Any time market value is found, it should equate to the replacement cost of the property.
Fact: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a home without being under duress from any outside group to buy or sell. If the house were rebuilt, the dollar amount required to do so would make up the replacement cost.
Myth: There are certain ways that real estate appraisers use to find the value of a house, such as the price per square foot.
Fact: An appraisal report is an amalgamation of data concluded from the property's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on DANIEL I KANDEL's appraisers to be forthright in assessing this data.
Myth: In a strong economy - when the prices of homes in a given area are found to be appreciating by a particular percentage - the prices of individual properties in the proximity can be expected to rise by that same percentage.
Fact: Value appreciation of a certain house must be determined on an individualized basis, factoring in information on comparable homes and other relevant specifications within the property itself. It doesn't matter if the economy is on the rise 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 house's exterior is determinate of the actual value of the house; there is no need to do an interior inspection.
Fact: There are a multitude of different variables that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just examining the property from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lender - unless the lender "releases its interest" in the report. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal report so long as it meets the necessities of their lending institution.
Fact: It is a very good idea for home buyers to go through a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its veracity. 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 information - 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: Appraisers are hired only to estimate real estate property values in house sales involving mortgage-lending transactions.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are nothing like a home inspection report. The job of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. A home inspector assesses the condition of the home and its major components and reports these findings.