Appraisal myths debunked
It is mandated by the government that a real estate appraiser is required to be state-licensed to write appraisals for federally-related real estate sales in Oklahoma. You also have the right to request a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be the same as the market value.
Fact: It is probable that Oklahoma, like most states, validates the common myth that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Oklahoma City have not been reassessed for years or more, it may vary wildly.
Myth: The appraised value of a property will be different depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The price of the property does not affect the salary of the appraiser; as a result, the appraiser has no personal interest in the cost of the home. Obviously, he will complete his job with impartiality and independence regardless for whom the appraisal is created.
Myth: Any time market value is established, it should equal the replacement cost of the house.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a particular home, with neither being under pressure to buy or sell. The dollar amount necessary to reconstruct a property is what forms the replacement cost.
Myth: Specific methods, like the price per square foot, are what appraisers use to determine the cost of a property.
Fact: An appraisal is an assertion of data concluded from the house's size, location, proximity to specific facilities, the condition of the home and the price of recent comparable sales. You can depend on OK Appraisals's staff to be honest in assessing this information.
Myth: In a robust economy - when the prices of properties in a given area are reported to be rising by a particular percentage - the values of individual houses in the proximity can be expected to increase by that same percentage.
Fact: Cost appreciation of a certain home must be determined on an individualized basis, factoring in information on comparable homes and other relevant specifications within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Oklahoma County or Oklahoma City, OK?Contact OK Appraisals
Myth: Just looking at what the home looks like on the outside gives a good idea of its worth.
Fact: To determine an accurate worth beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. An exterior inspection obviously can't provide all of the data required.
Myth: Considering that the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Fact: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the appraisal. However, home buyers must be provided with a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the needs of their lending agency.
Fact: Only if consumers check out a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, as it contains a great deal of information - 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a property needs its worth assessed in a lender sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a lot of different services including - but 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 serves a completely different purpose than an appraisal report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to determine the condition of the house and its main components, then write a report on their conclusions.