Appraisal myths debunked
It is mandated by legal agencies that an appraiser must be state-licensed to produce appraisals for federally-supported real estate sales in Washington. You have the ability to acquire a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Fact: While most states support the suggestion that assessed value is the same as estimated market value, this often is not the case. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an extended period.
Myth: The buyer or the seller will have some pull in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the result of the appraisal report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the home will be is on par with the market value.
Fact: Market value is arrived at through 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. Replacement value is the dollar amount required to rebuild a house in-kind.
Myth: There are specific methods that appraisers use to determine the opinion of value of a house, like the price per square foot.
Fact: Appraisers complete an exhaustive analysis of all factors in consideration to the cost of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable homes.
Myth: As houses appreciate by a specific percentage - in a robust economic state - the homes nearby are expected to appreciate by the same amount.
Fact: Any worth at which an appraiser arrives in regards to a particular home is always personalized, based on certain factors pulled from the data of comparable properties and other specifications within the home itself. This is true in strong economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Snohomish County or Mill Creek, WA?Contact Kent & Associates Appraisal
Myth: You can usually find what a property is worth simply by looking at the outside.
Fact: Property value is concluded by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data required.
Myth: Considering that the consumer is the party who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal is theirs.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers have to be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even concern themselves with what the appraisal contains so long as their lending institution is fine with the contents therein.
Fact: A home buyer should definitely look through their report; there could be some questions or some worries with the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since it contains an exorbitant amount of information - 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: Appraisals are ordered only to assess home values in home sales involving mortgage-lending deals.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: An appraisal report does not fulfill the same purpose as an inspection. An appraiser finds an opinion of value in the appraisal process and resulting appraisal report. A home inspector determines the condition of the home and its major components and reports their findings.