Appraisal myths & facts
Legally, a real estate appraiser is required to be state certified to create substantiated real estate appraisals for federally-supported transactions. The law entitles you to get a copy of your completed appraisal report from your lending agency after it has been provided. Contact us if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser should be exactly the same as the market value.
Fact: It is possible that Washington, like most states, supports the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Sometimes when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller sometimes may have impact in the cost of the house depending upon for whom the appraiser is working.
Fact: The appraiser has no personal interest in the result of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the house is always is on par with the market value.
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 duress from any outside group to buy or sell. The dollar amount demanded to rebuild a home is what shows the replacement cost.
Myth: Appraisers use a formula, such as a specific price per square foot, to come to the cost of a home.
Fact: An appraisal report is an assertion of information concluded from the property's size, location, proximity to some facilities, the condition of the house and the worth of recent comparable sales. You can rely on Sound Appraisal Group, Inc's staff to be honest in assessing this information.
Myth: As properties increase their worth by a certain percentage - in a robust economic state - the houses in proximity are figured to increase by the same amount.
Fact: Cost increase of a specific property is always determined on a case-by-case basis, factoring in data on comparable homes and other relevant considerations. 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 exterior 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 factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the data necessary.
Myth: Because the consumer is the party who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.
Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be given it by their lender.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it satisfies the requirements of their lender.
Fact: It is very important for home buyers to read a copy of their appraisal report so that they can double-check the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a valuable record for future reference, containing helpful and often-revealing information - including, but 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 proximity.
Myth: Appraisals are ordered only to estimate house values in house sales involving mortgage-lending transactions.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a lot of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal report is no different than a home inspection.
Fact: Appraisal reports are definitely not the same as a home inspection. An appraiser finds an opinion of value in the appraisal process and resulting appraisal. House inspectors will compose a report that will explain the condition of the house and its major components and possible damage.