Appraisal myths & facts
It is mandated by law that an appraiser is required to be state-licensed to produce appraisal reports for federally-supported real estate purchases in Louisiana. You have the ability to acquire a copy of the completed appraisal from your lender. Contact our professional staff if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser will be equivalent to the market value.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged period of time.
Myth: The buyer or the seller will have some pull 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 analysis, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is written.
Myth: Any time market value is established, it should be similar to the replacement cost of the house.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific home. The replacement cost is the dollar amount needed to rebuild a property in-kind.
Myth: Specific formulae, like the price per square foot, are the ways appraisers use to arrive at the price of a house.
Fact: Appraisers complete a detailed analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent worth of comparable properties.
Myth: As homes increase their worth by a specific percentage - in a strong economic state - the houses within the same neighborhood are expected to appreciate by the same amount.
Fact: Value appreciation of a specific home must be concluded on a case-by-case basis, factoring in information on comparable houses and other relevant considerations. It makes no difference if the economy is robust or bad.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact our professional staff
Myth: The home's exterior is determinate of the actual value of the house; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just looking at the house from the exterior.
Myth: Because 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, by law the appraisal report is theirs.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with one by their lending company.
Myth: Home buyers need not be concerned with what is in their appraisal report so long as it satisfies the necessities of their lending institution.
Fact: A home buyer should definitely inspect their appraisal report; there could be some questions or some worries with the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an appraisal that can be useful to the consumer in the future, such as 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: Appraisers are hired only to assess building values in house sales involving mortgage-lending transactions.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is no different than a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The point of an appraisal is to form an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will write a report that will determine the condition of the property and its major components and possible damage.