Appraisal myths debunked
Legally, an appraiser needs to be state certified to perform legitimate real estate appraisals for federally-supported transactions. Also by law, you are allowed to request a copy of the completed appraisal report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value should be the same as to market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are prime examples of why there might be a differential in price.
Myth: The value of a house will differ depending upon if the appraisal is produced for the buyer or the seller.
Fact: The appraiser has no vested interest in the result of the appraisal and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. If the home were reconstructed, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to come to the worth of a home.
Fact: An appraisal report is a collection of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can depend on Crescent Appraisal Group, Inc.'s appraisers to be honest in assessing this data.
Myth: When the economy is strong and the sales prices of properties are found to be rising by a certain percentage, the other homes in the area can be expected to rise based on that same percentage.
Fact: Any worth at which an appraiser concludes in regards to a specific property is always personalized, based on certain factors found from the data of comparable houses and other specifications within the home itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact us
Myth: The home's exterior is determinate of the actual value of the home; there is no need to do an interior appraisal.
Fact: To determine an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. An outside-only inspection certainly can't provide all of the information needed.
Myth: Because the consumer is the person who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.
Fact: Legally, the appraisal report is owned by the lender unless the lender releases their interest in the appraisal. Consumers must be given a version of the document upon written request as per the Equal Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in their document so long as it meets the requirements of their lending group.
Fact: It is a very good idea for consumers to look at a copy of their report so that they can double-check the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, filled with helpful and often-revealing data - 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 vicinity.
Myth: The only reason someone would order an appraisal is if a house needs its cost estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. The point of a home inspector is to approximate the condition of the house and its major components, then provide a report on their conclusions.