Common myths about appraising
By law, an appraiser is required to be state-licensed to produce appraisals for federally-related transactions. The law entitles you to acquire a copy of your finished appraisal from your lending agency after it has been produced. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value should be similar to the assessed value of the property.
Fact: While most states uphold the concept that assessed value is the same as estimated market value, this usually is not the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby homes are excellent examples of why the price can vary.
Myth: The buyer or the seller can have some pull in the cost of the house 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 analysis, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: The replacement value of the house will be is on par with the market value.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a home without being under influence from any external group to purchase or sell. Replacement cost is the dollar amount needed to rebuild a home in-kind.
Myth: Specific formulae, like the price per square foot of the property, are the ways appraisers use to ascertain the value of a house.
Fact: An appraisal report is an assertion of data concluded from the property's size, location, proximity to some facilities, the condition of the house and the cost of recent comparable sales. You can depend on Crest Appraisal Services's appraisers to be forthright in assessing this information.
Myth: In a robust economy - when the worth of properties in a given county are found to be appreciating by a certain percentage - the values of individual properties in the area can be expected to appreciate by that same percentage.
Fact: Any price at which an appraiser concludes concerning a specific property is always individualized, based on certain factors derived from the data of comparable homes and other specifications within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in King County or Seattle, WA?Contact our professional staff
Myth: You can commonly find what a property is worth simply by looking at the outside.
Fact: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just inspecting the property from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. However, home buyers have to be provided with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their report so long as it exceeds the requirements of their lending company.
Fact: A consumer should definitely read through their report; there may be some questions or some concerns about the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an appraisal report that will probably be useful to the home buyer 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: The only reason someone would order an appraisal is if a home needs its cost assessed in a lender sales transaction.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
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 arrive at an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will determine the condition of the house and its major components and possible damage.