Common myths about appraising
By law, an appraiser needs to be state-licensed to offer appraisals for federally-supported transactions. Also by law, you have the right to demand a copy of the completed report from your lender. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value should always be equal to market value.
Fact: It is probable that Louisiana, like most states, supports the common myth that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are excellent examples of why there might be a differential in price.
Myth: Depending on if the appraisal is done for the buyer or the seller, the appraised value of the property will vary.
Fact: The appraiser has no personal interest in the result of the report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value should equal replacement cost.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a home without being under pressure from any outside party to purchase or sell. Replacement value is the dollar amount necessary to rebuild a home in-kind.
Myth: There are certain methods that appraisers use to find the cost of a property, such as the price per square foot.
Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to some facilities, the condition of the house and the price of recent comparable sales. You can rely on Crescent Appraisal Group, Inc.'s appraisers to be ethical in assessing this information.
Myth: When the economy is on the rise and the sales prices of homes are found to be increasing by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Fact: Any cost at which an appraiser arrives concerning a particular home is always individualized, based on certain factors found from the data of comparable houses and other considerations within the home itself. It makes no difference whether the economy is good or terrible.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact our professional staff
Myth: The home's outside is determinate of the actual value of the home; there is no need to do an interior inspection.
Fact: There are a number of different variables that determine property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just inspecting the house from the exterior.
Myth: Since the consumer is the party who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with one by their lender.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the needs of their lending agency.
Fact: Only if home buyers check out a copy of their appraisal report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a near perfect record for future reference, containing 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 hire an appraiser is if a house needs its value estimated in a lender-based sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You don't have to get an appraisal if you have had a home inspection.
Fact: Appraisal reports are completely different than a home inspection report. The appraiser forms an opinion of value in the appraisal process and resulting report. The point of a home inspector is to approximate the condition of the home and its main components, then create a report on these conclusions.