Appraisal myths debunked
Legally, an appraiser must be state certified to produce substantiated real estate appraisals for federally-backed sales. You also have the right to request a copy of the completed report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser should be the same as the market value.
Fact: It could be that California, like most states, validates the suggestion that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby homes are prime examples of why the price can vary.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the home will vary.
Fact: The opinion of value of the home does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the value of the house. Obviously, he will conduct job with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: Any time market value is found, it should equate to the replacement cost of the house.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific property. The replacement cost is the dollar amount necessary to reconstruct a home in-kind.
Myth: There are specific methods that appraisers use to show the value of a home, such as the price per square foot.
Fact: An appraisal is an assertion of information concluded from the property's size, location, proximity to specific facilities, the condition of the property and the cost of recent comparable sales. You can depend on WalshStreet Appraisals's appraisers to be professional in assessing this data.
Myth: When the economy is on the rise and the worth of properties are found to be rising by a certain percentage, the other homes in the area can be expected to increase based on that same percentage.
Fact: All appreciation of price is on a case-by-case basis, concluded by information on relevant elements and the data of comparable houses. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Los Angeles, CA?Contact us
Myth: You can usually tell what a house is worth simply by looking at the outside.
Fact: Home worth is determined by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by examining the home from the outside.
Myth: Considering that the consumer is the one who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal. Home buyers have to be provided with a copy of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it meets the needs of their lending agency.
Fact: A consumer should definitely inspect their report; there might be some questions or some concerns about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, containing a great deal 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: Appraisals are ordered only to estimate home values in home sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal. An appraiser forms an opinion of value in the appraisal process and resulting document. The job of a home inspector is to determine the condition of the property and its major components, then provide a report on their findings.