Common myths about appraising
Legally, an appraiser has to be state certified to write substantiated appraisal reports for federally-supported sales. Also by law, you are entitled to demand a copy of the completed report from your lending agency. Contact our professional staff if you have any questions about the appraisal process.
Myth: The value that is ascertained by the appraiser will be equivalent to the market value.
Fact: It is possible that Arizona, like most states, supports the common myth that the assessed value equates to the market value; however, this is not often the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby houses are prime examples of why the price can vary.
Myth: The appraised value of a house will differ depending upon whether the appraisal is produced for the buyer or the seller.
Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be similar to the replacement cost of the home.
Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell. If the house were reconstructed, the dollar amount needed to do so would form the replacement cost.
Myth: Appraisers use a formula, like a certain price per square foot, to come to the worth of a home.
Fact: There are many varied ways that an appraiser will use to make an in-depth analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable properties.
Myth: When the economy is robust and the worth of homes are found to be appreciating by a certain percentage, the other properties in the vicinity can be expected to increase based on that same percentage.
Fact: Cost increase of a certain house is always concluded on an individualized basis, factoring in information on comparable houses and other relevant elements. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Maricopa County or Glendale, AZ?Contact our professional staff
Myth: You can usually see what a home is worth simply by looking at the exterior.
Fact: Home worth is determined by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just looking at the property from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they own their appraisal report.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Consumers have to be given a version of the appraisal report upon written request as per the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal so long as it meets the necessities of their lending agency.
Fact: A consumer should definitely inspect their report; there could be some questions or some worries about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, as it contains an exorbitant amount of information - including, but certainly 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the cost of a property during a sales transaction involving a lender.
Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't need to get an appraisal if you get a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. The appraiser forms an opinion of value in the appraisal process and resulting appraisal. The task of a home inspector is to approximate the condition of the property and its main components, then compose a report on these conclusions.