Appraisal myths & facts
By law, an appraiser is required to be state-licensed to perform appraisals for federally-related transactions. You have the ability to demand a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: While most states uphold the idea that assessed value is equal to estimated market value, this generally is not the case. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby homes are prime examples of why this occurs.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the opinion of value of the property will vary.
Fact: The appraiser has no vested interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property is always is on par with the market value.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a specific house, with neither being under undue influence to buy or sell. If the home were rebuilt, the dollar amount necessary to do so would form the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the cost of a house, like the price per square foot.
Fact: An appraisal report is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the price of recent comparable sales. You can rely on Levison Appraisal Company's staff to be forthright in assessing this data.
Myth: When the economy is robust and the value of houses are found to be increasing by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a certain home is always individualized, based on certain factors found from the information of comparable houses and other considerations within the home itself. It makes no difference whether the economy is strong or poor.
Have other questions about appraisers, appraising or real estate in Saint Louis County or Chesterfield, MO?Contact our professional staff
Myth: The home's exterior is determinate of the actual worth of the home; there is no need to do an interior inspection.
Fact: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data needed.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their property, they own their appraisal.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal. Under the Equal Credit Opportunity Act, any consumer demanding a copy of the appraisal report must be provided with one by their lender.
Myth: Home buyers need not be concerned with what is in their report so long as it exceeds the needs of their lending company.
Fact: Only if consumers read a copy of their report can they verify 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, but not limited to, 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 home during a sales transaction involving a lending agency.
Fact: Based upon their qualifications and designations, appraisers can and may provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't need to get an appraisal if you have had a home inspection.
Fact: Appraisal reports are completely different than a home inspection. An appraiser forms an opinion of value in the appraisal process and resulting report. House inspectors will write a report that will show the condition of the home and its major components and possible damage.