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Legally, an appraiser must be state certified to perform legitimate appraisal reports for federally-related transactions. You have the ability to receive a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal process.

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

Myth: Market value needs to be equivocal to the assessed value of the property.
Reality: It might be that California, like most states, validates the idea that the assessed value equates to the market value; however, this is not always true. At times when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for a good length of time, it may vary widely.

Myth: The buyer or the seller will have impact in the cost of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: The replacement cost of the property is always in line with the market value.
Reality: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. The dollar amount needed to reconstruct a home is what shows the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the value of a property.
Reality: Appraisers make an exhaustive 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: When the economy is strong and the sales prices of homes are found to be appreciating by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.
Reality: Any value an appraiser reports concerning a certain property is always individualized, based on certain factors derived from the data of comparable homes and other considerations within the house itself. It makes no difference if the economy is powerful or poor.

Myth: The home's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.
Reality: There are a multitude of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived simply by looking at the home from the outside.

Myth: Since 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 report is theirs.
Reality: Legally, the document is owned by the lending agency unless the lender releases their interest in the appraisal. However, consumers must be supplied with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even care about what the appraisal contains so long as their lender is satisfied.
Reality: It is very important for home buyers to look at a copy of their report so that they can verify the accuracy of the document, in case it's required 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 contained in an appraisal 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 area.

Myth: Appraisals are ordered only to assess home values in property sales involving mortgage-lending deals.
Reality: Appraisers can have many varied qualifications and designations which allow them to perform 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: A property inspection serves the same purpose as an appraisal.
Reality: An appraisal does not serve the same purpose as an inspection report. An appraiser decides upon an opinion of value in the appraisal process and resulting report. House inspectors will compose a report that will express the condition of the house and its major components and possible damage.

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