Common myths about appraising

It is enforced by legal agencies that an appraiser is required to be state-licensed to write appraisal reports for federally-related property sales in Florida. The law gives you the right to acquire a copy of your completed appraisal from your lender after it has been produced. Contact Hometown Appraisals, LLC if you have any questions about the appraisal procedure.

Myth: Market value should be the same as the assessed value of the property.

Fact: While most states back the concept that assessed value equates estimated market value, this usually is not the case. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby properties are perfect examples of why the price can vary.

Myth: The buyer or the seller can have impact in the value of the house depending upon for whom the appraiser is working.

Fact: There is no vested interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is created.

Myth: The replacement value of the house should be is on par with the market value.

Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount necessary to reconstruct a home in-kind.

Myth: There are certain methods that real estate appraisers use to show the cost of a property, such as the price per square foot.

Fact: Appraisers make a comprehensive analysis of all factors pertaining to the worth of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Myth: In a powerful economy - when the worth of houses in a given county are reported to be appreciating by a particular percentage - the values of individual homes in the area can be expected to appreciate by that same percentage.

Fact: All appreciation of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes. It makes no difference whether the economy is excellent or terrible.

Myth: The home's outside is determinate of the actual value of the property; there is no need to do an interior appraisal.

Fact: Property worth is concluded by a multitude of variables, including location, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the information necessary.

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

Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal report. However, home buyers must be supplied with a copy of the appraisal report upon written request, under the Equal Credit Opportunity Act.

Myth: There's no point for consumers to even worry about what the appraisal contains so long as their lending agency is satisfied.

Fact: Only if consumers look through a copy of their appraisal can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data stored in an appraisal report that can 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.