Common myths about appraising

Legally, an appraiser must be state certified to produce legitimate real estate appraisals for federally-backed transactions. You have the ability to receive a copy of the finished appraisal from your lender. Contact Kent & Associates Appraisal if you have any questions about the appraisal procedure.

Myth: Market value needs to be the same as the assessed value of the property.

Fact: It could be that Washington, like most states, supports the common myth that the assessed value is the same as the market value; however, this is not always true. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an extended period of time.

Myth: The buyer or the seller can have impact in the value of the property depending upon for whom the appraiser is working.

Fact: There is no vested interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is ordered.

Myth: Any time market value is found, it should be the same as the replacement cost of the house.

Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a house without being under influence from any outside party to buy or sell. The dollar amount required to reconstruct a home is what shows the replacement cost.

Myth: Certain formulae, such as the price per square foot, are the ways appraisers use to arrive at the cost of a house.

Fact: Appraisers complete a detailed analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.

Myth: As houses increase their worth by a specific percentage - in a robust economic state - the homes nearby are expected to increase by the same amount.

Fact: All increase of value is on a one-on-one basis, concluded by information on relevant elements and the data of comparable houses. This is true in fair economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Snohomish County or Mill Creek, WA?

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Myth: The property's exterior is determinate of the actual value of the house; there is no need to do an interior appraisal.

Fact: To find an accurate value beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by inspecting the house from the outside.

Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal report.

Fact: Legally, the document is owned by the lending agency unless the lender releases their interest in the appraisal. However, consumers have to be supplied with a copy of the report upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the report so long as it satisfies the needs of their lending company.

Fact: A home buyer should definitely read through their appraisal report; there might be some questions or some concerns about the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, filled with helpful and often-revealing information - including 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 property sales involving mortgage-lending deals.

Fact: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: An appraisal is no different than a home inspection.

Fact: An appraisal does not fulfill the same purpose as an inspection report. The task of the appraiser is to find an opinion of value in the appraisal process and through creating the report. A home inspector analyzes the condition of the property and its major components and reports their findings.