Common myths about appraising
It is required by legal agencies that an appraiser needs to be state-licensed to produce appraisal reports for federally-related property sales in Louisiana. Also by law, you have the ability to demand a copy of the finished appraisal from your lending agency. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser must be equivalent to the market value.
Fact: It could be that Louisiana, like most states, validates the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended period of time.
Myth: The appraised value of a property will be different depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The opinion of value of the house does not affect the salary of the appraiser; as a result, the appraiser has no pressured interest in the opinion of value of the home. Obviously, he will conduct business with impartiality and independence regardless for whom the appraisal is provided.
Myth: The replacement cost of the house will be is on par with the market value.
Fact: The way market value is found is based on what a buyer would likely pay a willing seller for a house without being under influence from any external group to buy or sell. If the home were reconstructed, the dollar amount required to do so would be the replacement cost.
Myth: There are certain methods that appraisers use to determine the opinion of value of a house, such as the price per square foot.
Fact: An appraisal is an assertion of information concluded from the house's size, location, proximity to specific facilities, the condition of the property and the value of recent comparable sales. You can rely on Crescent Appraisal Group, Inc.'s appraisers to be ethical in assessing this information.
Myth: As homes appreciate by a specific percentage - in a strong economic state - the homes nearby are figured to appreciate by the same amount.
Fact: All increase of worth is on a case-by-case basis, concluded by information on relevant conditions and the data of comparable houses. It makes no difference if the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact Crescent Appraisal Group, Inc.
Myth: You can generally see what a home is worth simply by looking at the outside.
Fact: To conclude an accurate price beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. An external inspection obviously can't provide all of the information needed.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your home, you own the produced appraisal.
Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be provided with it by their lender.
Myth: There's no point for consumers to even concern themselves with what the appraisal contains so long as their lending company is fine with the contents therein.
Fact: A consumer should definitely look through their report; there could be some questions or some concerns about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve 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: Appraisals are ordered only to estimate real estate property values in property sales involving mortgage-lending transactions.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a multitude of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is the same as a home inspection report.
Fact: Appraisal reports are definitely not the same as a home inspection. The purpose of an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the report. House inspectors will compose a report that will explain the condition of the house and its major components and possible damage.