Appraisal myths debunked
By law, an appraiser is required to be state-licensed to offer appraisals for federally-backed transactions. The law gives you the right to acquire a copy of your completed appraisal from your lending agency after it has been provided. Contact OK Appraisals if you have any questions about the appraisal process.
Myth: Market value will always be similar to the assessed value of the property.
Fact: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an extended period of time.
Myth: The appraised value of a home will vary depending upon if the appraisal is provided for the buyer or the seller.
Fact: The appraiser has no vested interest in the result of the appraisal report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should equal replacement cost.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a home without being under duress from any external group to buy or sell. If the home were reconstructed, the dollar amount needed to do so would be the replacement cost.
Myth: There are specific methods that real estate appraisers use to find the value of a house, like the price per square foot.
Fact: An appraisal report is an assertion of information concluded from the home's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can depend on OK Appraisals's appraisers to be honest in assessing this data.
Myth: As houses appreciate by a certain percentage - in a strong economy - the houses in proximity are expected to appreciate by the same amount.
Fact: All appreciation of worth is on an individual basis, concluded by information on relevant elements and the data of comparable properties. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Oklahoma County or Oklahoma City, OK?Contact OK Appraisals
Myth: You can often find what a house is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information required.
Myth: Because the consumer is the one who provides the capital to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Home buyers must be given a copy of the appraisal report upon written request because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even worry about what the appraisal report contains so long as their lending institution is fine with the contents therein.
Fact: It is very important for home buyers to go through a copy of their report so that they can double-check the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal report that will probably be useful to the home buyer 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: The only reason someone would order an appraisal is if a house needs its price estimated in a lender-based sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and may perform a multitude of 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.
Fact: Appraisal reports are completely different than a home inspection report. The appraiser finds an opinion of value in the appraisal process and resulting appraisal report. The purpose of a home inspector is to find the condition of the property and its major components, then provide a report on their inspection.