Appraisal myths debunked
Legally, an appraiser is required to be state certified to write legitimate real estate appraisals for federally-supported transactions. Also by law, you have the right to request a copy of the completed report from your lending agency. Contact Appraisal Express HI, LLC if you have any questions about the appraisal process.
Myth: Market value has to be equivocal to the assessed value of the property.
Fact: 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. At times when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The opinion of value of a property will differ depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The value of the property does not affect the payment of the appraiser; as a result, the appraiser has no pressured interest in the value of the home. What this means is he will provide services with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is found, it should be the same as the replacement cost of the home.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount required to reconstruct a property is what constitutes the replacement cost.
Myth: Appraisers use a calculation, like a certain price per square foot, to figure out the cost of a property.
Fact: Appraisers make a comprehensive analysis of all factors pertaining to the cost of a house, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: In a powerful economy - when the sales prices of homes in a given region are found to be appreciating by a certain percentage - the prices of individual houses in the proximity can be expected to appreciate by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, determined by information on relevant considerations and the data of comparable houses. It makes no difference if the economy is powerful or on the decline.
Have other questions about appraisers, appraising or real estate in Maui County or Kihei, Hawaii?Contact Appraisal Express HI, LLC
Myth: Just looking at what the home looks like on its exterior gives a good idea of its cost.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. As you can see, none of these things can be found simply by examining the house from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance real estate, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the report. Because of the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be provided with one by their lending company.
Myth: There's no need for home buyers to even worry about what the appraisal contains so long as their lending institution is fine with the contents therein.
Fact: A consumer should definitely inspect their document; there may be some questions or some concerns about the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, as it contains an exorbitant amount of data - including, but certainly 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a house needs its worth estimated in a lender sales transaction.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you order a home inspection.
Fact: A home inspection serves a completely different purpose than an appraisal report. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will express the condition of the house and its major components and possible damage.