It is required by the government that an appraiser be state-licensed to produce appraisal reports for federally-related transactions in California. The law gives you the right to get a copy of your completed report from your lending agency after it has been produced. Contact WalshStreet Appraisals if you have any concerns about the appraisal process.

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

Myth: Assessed value will always be similar to market value.
Reality: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended time.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the opinion of value of the house will vary.
Reality: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, no matter of for whom the appraisal is created.

Myth: Market value will be the same as replacement cost.
Reality: The way market value is derived is based on what a home buyer would likely pay a willing seller for a house without being under influence from any outside group to buy or sell. Replacement cost is the dollar amount necessary to rebuild a property in-kind.

Myth: Appraisers use a calculation, like a certain price per square foot, to arrive at the value of a house.
Reality: There are many differing calculations that an appraiser will use to make an in-depth investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to certain facilities and the sales prices of recently sold comparable properties.

Myth: As homes appreciate by a certain percentage - in a robust economic state - the houses in proximity are expected to appreciate by the same amount.
Reality: All appreciation of value is on an individual basis, determined by information on relevant elements and the data of comparable houses. It makes no difference whether the economy is good or poor.

Myth: The home's exterior is determinate of the actual value of the house; it is unnecessary to do an interior inspection.
Reality: Home value is determined by a multitude of factors, including location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by inspecting the property from the exterior.

Myth: Since you're the one paying for the appraisal when applying for your loan to buy or refinance your home, you own the produced appraisal report.
Reality: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Home buyers must be given a version of the document upon written request because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal report so long as it meets the necessities of their lending agency.
Reality: A home buyer should definitely read through their appraisal; there will probably be some questions or some worries about the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in a report that should 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.

Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a home during a sales transaction involving a lender.
Reality: Based upon their qualifications and designations, appraisers can and will perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal is the same as a home inspection report.
Reality: A home inspection report has a completely different purpose than an appraisal. An appraiser finds an opinion of value in the appraisal process and resulting report. A home inspector analyzes the condition of the building and its main components and reports their findings.

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