Appraisal myths & facts
It is enforced by law that an appraiser is required to be state-licensed to perform appraisals for federally-related property transactions in Washington. The law gives you the right to acquire a copy of your finished report from your lending agency after it has been produced. Contact Sound Appraisal Group, Inc if you have any concerns about the appraisal procedure.
Myth: The value that is assessed by the appraiser should be equivalent to the market value.
Fact: While most states support the concept that assessed value is the same as estimated market value, this commonly is not the case. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an prolonged time.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the home will vary.
Fact: There is no real interest on the part of the appraiser in the outcome of the report, therefore he will conduct 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 house.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a house without being under pressure from any outside party to purchase or sell. Replacement cost is the dollar amount necessary to rebuild a home in-kind.
Myth: There are certain ways that real estate appraisers use to determine the cost of a property, like the price per square foot.
Fact: There are many varied formulae that an appraiser will use to make a full investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to certain facilities and the cost of recently sold comparable homes.
Myth: When the economy is robust and the value of houses are reported to be appreciating by a certain percentage, the other houses in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Any cost at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors derived from the information of comparable homes and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Kitsap County or Silverdale, WA?Contact Sound Appraisal Group, Inc
Myth: The property's outside is determinate of the actual value of the property; there is no need to do an interior inspection.
Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these variables can be found just by looking at the home from the outside.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: Legally, the report is owned by the lending company unless the lender relinquishes their interest in the appraisal. However, consumers must be provided with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the needs of their lender.
Fact: It is very important for home buyers to read a copy of their report so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored in an appraisal that will probably 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: The only reason someone would hire an appraiser is if a property needs its value assessed in a lender sales transaction.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through writing the report. A home inspector assesses the condition of the property and its main components and reports these findings.