|Legally, an appraiser has to be state certified to perform substantiated appraisal reports for federally-related transactions. You also have the right to demand a copy of the completed appraisal from your lending agency. Contact our professional staff if you have any questions about the appraisal process.|
ASC Professionals, LLC discusses myths and realities about real estate appraisals and appraisers
Myth: Assessed value should be similar to market value.
Reality: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby homes are perfect examples of why there might be a differential in price.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the opinion of value of the house will vary.
Reality: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, no matter of for whom the appraisal is conducted.
Myth: Market value will be the same as replacement cost.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: There are specific methods that appraisers use to find the cost of a house, such as the price per square foot.
Reality: There are many different ways that an appraiser will use to make a detailed investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to specific facilities and the values of recently sold comparable properties.
Myth: When the economy is robust and the sales prices of houses are found to be increasing by a certain percentage, the other houses in the vicinity can be expected to appreciate based on that same percentage.
Reality: Any value an appraiser reports concerning a specific home is always personalized, based on certain factors found from the data of comparable houses and other specifications within the property itself. It doesn't matter if the economy is doing well or declining.
Myth: Just seeing what the home looks like on its exterior gives a good idea of its value.
Reality: There are a multitude of different variables that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by viewing the home from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal. Home buyers must be supplied with a copy of the appraisal report through request as per the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even concern themselves with what the appraisal contains so long as their lending institution is fine with the contents therein.
Reality: Only when home buyers read a copy of their report can they double-check its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored in an appraisal 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 region.
Myth: The only reason someone would order an appraisal is if a house needs its value estimated in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series 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.
Reality: Appraisal reports are completely different than a home inspection report. The reason behind an appraisal report is to conclude upon an opinion of market value during the appraisal process and the completion of the report. A home inspector assesses the condition of the building and its main components and reports their findings.
|Contact our professional staff if you have any other questions about appraisers, appraising or real estate in Cobb or Acworth, Georgia.|