Appraisal myths & facts
It is enforced by the government that an appraiser needs to be state-licensed to offer appraisal reports for federally-supported property purchases in Louisiana. The law gives you the right to receive a copy of your finished report from your lending agency after it has been produced. Contact Crescent Appraisal Group, Inc. if you have any concerns about the appraisal process.
Myth: The value that is assessed by the appraiser must be exactly the same as the market value.
Fact: It is possible that Louisiana, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not often the case. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are excellent examples of why there might be a differential in price.
Myth: The opinion of value of a property will differ depending upon if the appraisal is ordered for the buyer or the seller.
Fact: The value of the home does not affect the pay of the appraiser; as a result, the appraiser has no preconceived interest in the cost of the house. This means that he will provide task with impartiality and independence regardless for whom the appraisal is produced.
Myth: The replacement value of the home is always is on par with the market value.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under pressure from any external party to buy or sell. The dollar amount required to reconstruct a home is what shows the replacement cost.
Myth: There are certain ways that real estate appraisers use to determine the cost of a property, such as the price per square foot.
Fact: Appraisers make a detailed analysis of all factors in consideration to the worth of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.
Myth: In a powerful economy - when the costs of properties in a given region are found to be appreciating by a certain percentage - the prices of individual homes in the area can be expected to rise by that same percentage.
Fact: Any worth at which an appraiser arrives in regards to a particular property is always personalized, based on certain factors pulled from the data of comparable homes and other specifications within the home itself. It makes no difference whether the economy is robust or terrible.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact Crescent Appraisal Group, Inc.
Myth: Just looking at what the home looks like on the outside gives an excellent idea of its worth.
Fact: Property value is determined by a multitude of variables, including area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the information needed.
Myth: Since you're the one paying for the appraisal when applying for the loan to buy or refinance real estate, you own the provided appraisal report.
Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the report. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be given it by their lending company.
Myth: Home buyers need not care about what is in their appraisal so long as it exceeds the necessities of their lending agency.
Fact: It is very important for consumers to go through a copy of their appraisal report so that they can verify the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, since it contains an incredible 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lender.
Fact: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you get a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting document. House inspectors will produce a report that will explain the condition of the house and its major components and possible damage.