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By law, an appraiser needs to be state-licensed to perform appraisals for federally-related transactions. You have the ability to receive a copy of the finished appraisal from your lending agency. Contact WalshStreet Appraisals if you have any concerns about the appraisal procedure.

WalshStreet Appraisals discusses myths and realities about real estate appraisals and appraisers

Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Reality: While most states back the suggestion that assessed value is equal to estimated market value, this usually is not the case. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby properties are prime examples of why the price can vary.

Myth: The value of a property will vary depending upon if the appraisal is conducted for the buyer or the seller.
Reality: The cost of the home does not affect the salary of the appraiser; due to this, the appraiser has no vested interest in the price of the home. What this means is he will provide task with impartiality and objectivity regardless of for whom the appraisal is conducted.

Myth: Market value should equal replacement cost.
Reality: The way market value is derived is based on what a home buyer would likely pay a willing seller for a property without being under influence from any external party to buy or sell. The dollar amount demanded to rebuild a home is what forms the replacement cost.

Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the value of a home.
Reality: An appraisal report is a collection of data concluded from the property's size, location, proximity to certain facilities, the condition of the property and the values of recent comparable sales. You can rely on WalshStreet Appraisals's staff to be honest in assessing this data.

Myth: As homes appreciate by a specific percentage - in a robust economic state - the houses nearby are expected to appreciate by the same amount.
Reality: All increase of value is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable houses. This is true in good economic times as well as bad.

Myth: Just examining what the house looks like on its exterior gives an idea of its value.
Reality: To determine a concrete value beyond all doubt, an appraiser must assess the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. Obviously, none of these variables can be derived simply by viewing the property from the exterior.

Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their property, they legally own their appraisal.
Reality: Unless a lender releases its interest in the document, it is legally owned by the lending agency that ordered the appraisal. However, home buyers have to be provided with a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.

Myth: Consumers need not care about what is in their document so long as it meets the needs of their lending company.
Reality: Only when home buyers check out a copy of their appraisal can they ensure its accuracy and know if they should ask questions. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, as it contains an exorbitant amount of 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: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.
Reality: Ordering an appraisal can fulfill a variety of needs 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: There's no reason to get an appraisal if you get a home inspection.
Reality: A home inspection has a completely different purpose than an appraisal report. The point of an appraisal is to conclude upon an opinion of market value during the appraisal process and the completion of the report. A home inspector analyzes the condition of the property and its main components and reports these findings.

Contact us if you have any other questions about appraisers, appraising or real estate in Los Angeles or Los Angeles, California.