Appraisal myths & facts
It is enforced by legal agencies that a real estate appraiser is required to be state-licensed to produce appraisal reports for federally-related home purchases in North Carolina. You have the ability to demand a copy of the finished appraisal from your lending agency. Contact our professional staff if you have any questions about the appraisal process.
Myth: Assessed value should be equal to market value.
Fact: It is probable that North Carolina, like most states, supports the idea that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Usually when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Clemmons have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is ordered for the buyer or the seller, the opinion of value of the house will vary.
Fact: The value of the house does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the value of the house. This means that he will render job with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Any time market value is found, it should equate to the replacement cost of the home.
Fact: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a house without being under pressure from any outside group to purchase or sell. Replacement cost is the dollar amount needed to reconstruct a house in-kind.
Myth: Appraisers use a formula, such as a certain price per square foot, to figure out the cost of a house.
Fact: There are many differing formulae that an appraiser will use to make a detailed investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to certain facilities and the cost of recently sold comparable properties.
Myth: In a robust economy - when the worth of properties in a given region are reported to be increasing by a particular percentage - the costs of individual homes in the area can be expected to rise by that same percentage.
Fact: Any worth at which an appraiser concludes in regards to a specific house is always personalized, based on certain factors derived from the information of comparable homes and other specifications within the home itself. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Forsyth County or Clemmons, NC?Contact our professional staff
Myth: Just seeing what the house looks like on its exterior gives a good idea of its cost.
Fact: To determine an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on area, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the information necessary.
Myth: Because the consumer is the party who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Legally, the report is owned by the lender unless the lender releases their interest in the appraisal. Consumers must be supplied with a version of the report through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal report so long as it meets the needs of their lending company.
Fact: A home buyer should definitely read through their report; there could be some questions or some concerns with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an report that could 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a house during a sales transaction involving a lending company.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series 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: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting document. House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.
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