Appraisal myths & factsIt is required by the government that an appraiser must be state-licensed to perform appraisal reports for federally-supported real estate sales in North Carolina. Also by law, you have the ability to receive a copy of the finished appraisal from your lender. Contact us if you have any questions about the appraisal procedure. Myth: The value that is assessed by the appraiser is required to be the same as the market value.Fact: While most states back the concept that assessed value equates estimated market value, this commonly is not the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are prime examples of why this occurs. Myth: The buyer or the seller will have impact in the value of the house depending upon for whom the appraiser is working.Fact: The appraiser has no personal interest in the result of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is written. Myth: Any time market value is found, it should equal the replacement cost of the property.Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a house without being under duress from any external group to purchase or sell. Replacement cost is the dollar amount required to rebuild a house in-kind. Myth: Appraisers use a calculation, such as a specific price per square foot, to conclude the value of a property.Fact: Appraisers complete a detailed analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent values of comparable homes. Myth: When the economy is strong and the sales prices of properties are reported to be increasing by a certain percentage, the other houses in the vicinity can be expected to appreciate based on that same percentage.Fact: Cost appreciation of a certain property must be concluded on a case-by-case basis, factoring in data on comparable properties and other relevant elements. 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 usMyth: The house's exterior is determinate of the actual value of the property; it is unnecessary to do an interior inspection.Fact: House value is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data needed. Myth: Since the consumer is the party who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal is theirs.Fact: Legally, the appraisal is owned by the lender unless the lender relinquishes their interest in the document. However, consumers must be supplied with a copy of the appraisal report 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 satisfies the necessities of their lending company.Fact: A home buyer should definitely read through their document; there will probably be some questions or some worries with the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, since it contains an incredible amount 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: Appraisals are ordered only to assess building values in property sales involving mortgage-lending deals.Fact: Depending upon their qualifications and designations, appraisers can and do provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis. Myth: An appraisal report is the same as a home inspection.Fact: An appraisal report does not serve the same purpose as an inspection report. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report. House inspectors will compose a report that will determine the condition of the house and its major components and possible damage. |
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