Common myths about appraising
By law, an appraiser is required to be state-licensed to perform appraisals for federally-backed transactions. You have the ability to acquire a copy of the completed report from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should be similar to to market value.
Fact: While most states support the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for quite some time, it may vary wildly.
Myth: The opinion of value of a house will change depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The cost of the property does not affect the pay of the appraiser; because of this, the appraiser has no vested interest in the worth of the house. Obviously, he will conduct job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under undue influence to buy or sell. The dollar amount necessary to rebuild a house is what constitutes the replacement cost.
Myth: There are certain ways that appraisers use to find the opinion of value of a home, such as the price per square foot.
Fact: An appraisal report is a collection of data based on the house's size, location, proximity to specific facilities, the condition of the property and the cost of recent comparable sales. You can rely on The Welter Appraisal Group's appraisers to be ethical in assessing this data.
Myth: When the economy is on the rise and the worth of houses are reported to be appreciating by a certain percentage, the other houses in the vicinity can be expected to appreciate based on that same percentage.
Fact: Worth increase of a certain property must be determined on a case-by-case basis, factoring in data on comparable properties and other relevant elements. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Monmouth County or Oakhurst, NJ?Contact The Welter Appraisal Group
Myth: You can often see what a house is worth simply by looking at the outside.
Fact: There are a multitude of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by inspecting the home from the exterior.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance real estate, they legally own their appraisal report.
Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. However, home buyers must be supplied with a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even concern themselves with what the report contains so long as their lending agency is fine with the contents therein.
Fact: It is almost imperative for home buyers to go through a copy of their appraisal so that they can double-check the accuracy of the document, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable record for future reference, comprised of useful and often-revealing 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 area.
Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a multitude of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: An appraisal is the same as a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. The task of a home inspector is to determine the condition of the home and its major components, then create a report on these findings.