Common myths about appraising
It is enforced by law that an appraiser must be state-licensed to create appraisals for federally-supported property transactions in North Carolina. You also have the right to receive a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser will be exactly the same as the market value.
Fact: While most states back the suggestion that assessed value is the same as estimated market value, this commonly is not the case. Often when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the area have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the cost of the house will vary.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.
Myth: The replacement cost of the home is always 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 house, with neither being under undue influence to buy or sell. If the home were rebuilt, the dollar amount needed to do so would make up the replacement cost.
Myth: There are specific ways that real estate appraisers use to find the cost of a house, such as the price per square foot.
Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to certain facilities, the condition of the house and the price of recent comparable sales. You can count on Herrin Appraisal Company's appraisers to be professional in assessing this data.
Myth: In a strong economy - when the sales prices of properties in a given county are found to be rising by a certain percentage - the prices of individual homes in the area can be expected to increase by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, found by data on relevant conditions and the data of comparable properties. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Forsyth County or Clemmons, NC?Contact our professional staff
Myth: You can usually tell what a home is worth simply by looking at the exterior.
Fact: Property value is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by looking at the house from the outside.
Myth: Since the consumer is the person who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be provided with it by their lender.
Myth: There's no reason for consumers to even worry about what the appraisal report contains so long as their lending institution is satisfied.
Fact: Only if consumers read a copy of their appraisal 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. There is a wealth of information stored in an appraisal that will probably be useful to the consumer 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 area.
Myth: Appraisers are hired only to estimate house values in home sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of needs 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: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are nothing like a home inspection. The purpose of an appraisal is to arrive at an opinion of fair market value during the appraisal process and the completion of the appraisal report. A home inspector analyzes the condition of the home and its major components and reports these findings.
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