Common myths about appraising
It is enforced by legal agencies that an appraiser needs to be state-licensed to create appraisal reports for federally-related home sales in Missouri. You are also entitled by law to acquire a copy of the completed report from your lender. Contact us if you have any concerns about the appraisal process.
Myth: Assessed value generally will be the same as to market value.
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 has not seen the improvements, or when properties in the area have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller can have some pull in the value of the home depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the salary of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the home. What this means is he will provide business with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: The replacement cost of the property will be is on par with the market value.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific home. Replacement value is the dollar amount needed to reconstruct a house in-kind.
Myth: There are certain ways that real estate appraisers use to find the cost of a home, like the price per square foot.
Fact: An appraisal is an assertion of data based on the home's size, location, proximity to undesirable facilities, the condition of the property and the price of recent comparable sales. You can count on Levison Appraisal Company's appraisers to be ethical in assessing this information.
Myth: When the economy is strong and the worth of homes are found to be appreciating by a certain percentage, the other homes in the area can be expected to increase based on that same percentage.
Fact: Any price at which an appraiser arrives in regards to a particular home is always personalized, based on certain factors found from the information of comparable properties and other considerations within the house itself. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Saint Louis County or Chesterfield, MO?Contact us
Myth: You can often tell what a property is worth simply by looking at the outside.
Fact: To conclude an accurate price beyond all doubt, an appraiser must inspect the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these factors can be derived just by inspecting the house from the exterior.
Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: Legally, the appraisal report is owned by the lending agency unless the lender releases their interest in the appraisal. However, consumers have to be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it exceeds the requirements of their lending group.
Fact: A consumer should definitely read through their report; there could be some questions or some concerns about the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information contained in an appraisal 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 proximity.
Myth: Appraisals are ordered only to assess home values in home sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and often do perform a series 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 get a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. The function of an appraisal report is to find an opinion of fair market value during the appraisal process and the completion of the appraisal report. The task of a home inspector is to approximate the condition of the property and its main components, then compose a report on their inspection.