Appraisal myths debunked
It is mandated by legal agencies that an appraiser needs to be state-licensed to create appraisals for federally-related home sales in California. Also by law, you are entitled to request a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser should be equivalent to the market value.
Fact: While most states uphold the suggestion that assessed value is the same as estimated market value, this usually is not the case. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby houses are excellent examples of why the price can vary.
Myth: The buyer or the seller often will have leverage in the cost of the home 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 report, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is ordered.
Myth: The replacement value of the home is always is on par with the market value.
Fact: Without any influence from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property. Replacement value is the dollar amount needed to rebuild a property in-kind.
Myth: There are specific methods that real estate appraisers use to show the cost of a home, such as the price per square foot.
Fact: Appraisers make an exhaustive analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.
Myth: As properties appreciate by a certain percentage - in a robust economy - the homes around the appreciating properties are figured to increase by the same amount.
Fact: Worth appreciation of a specific home is always concluded on an individualized basis, factoring in information on comparable houses and other relevant specifications within the property itself. It makes no difference whether the economy is powerful or bad.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Los Angeles, CA?Contact WalshStreet Appraisals
Myth: You can generally see what a property is worth simply by looking at the outside.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this data from simply inspecting the home from the exterior.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their home, they legally own their appraisal.
Fact: Unless a lender releases its vestment in the document, 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 appraisal report must be given one by their lending agency.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lending agency.
Fact: It is very important for home buyers to peruse a copy of their appraisal so that they can double-check 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. An appraisal report can serve as a record for the future, containing an exorbitant amount of data - 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: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender sales transaction.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you order a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The appraiser finds an opinion of value in the appraisal process and resulting document. A home inspector analyzes the condition of the home and its main components and reports these findings.