Common myths about appraising

By law, an appraiser must be state-licensed to produce appraisals for federally-supported purchases. The law gives you the right to acquire a copy of your finished appraisal report from your lending agency after it has been produced. Contact our professional staff if you have any questions about the appraisal process.

Myth: The value that is ascertained by the appraiser should be exactly the same as the market value.

Fact: It is possible that Washington, like most states, supports the idea that the assessed value equals the market value; however, this certainly varies based on state-to-state. Generally when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the area have not been reassessed for quite a while, it may vary wildly.

Myth: The buyer or the seller will have some pull in the cost of the property depending upon for whom the appraiser is working.

Fact: There is no personal interest on the part of the appraiser in the outcome of the analysis, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.

Myth: Any time market value is found, it should equal the replacement cost of the home.

Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific home. If the property were rebuilt, the dollar amount needed to do so would be the replacement cost.

Myth: Certain methods, like the price per square foot of the property, are the methods appraisers use to ascertain the worth of a home.

Fact: Appraisers make a comprehensive analysis of all factors in consideration to the value of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

Myth: As homes increase their worth by a certain percentage - in a robust economy - the houses nearby are expected to increase by the same amount.

Fact: All increase of value is on a one-on-one basis, concluded by data on relevant considerations and the data of comparable properties. This is true in good economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Kitsap County or Silverdale, WA?

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Myth: The property's outside is determinate of the actual value of the house; it is unnecessary to do an interior inspection.

Fact: Property value is determined by a multitude of factors, including area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just inspecting the house from the exterior.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal report.

Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be provided with one by their lender.

Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the requirements of their lender.

Fact: It is almost imperative for consumers to check over a copy of their appraisal report so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an report that could be useful to the home buyer 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 region.

Myth: Appraisers are hired only to estimate home values in property sales involving mortgage-lending deals.

Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: An appraisal report is no different than a home inspection report.

Fact: A home inspection report serves a completely different purpose than an appraisal. The appraiser finds an opinion of value in the appraisal process and resulting document. House inspectors will write a report that will show the condition of the property and its major components and possible damage.