Appraisal myths debunked
It is enforced by the government that a real estate appraiser needs to be state-licensed to produce appraisals for federally-supported property purchases in North Carolina. You also have the right to acquire a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value will always be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. At times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Raleigh have not been reassessed for quite some time, it may vary wildly.
Myth: The appraised value of a property will change depending upon if the appraisal is provided for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the outcome of the appraisal, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is written.
Myth: Market value will approximate replacement cost.
Fact: Market value is based on what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell. The dollar amount required to rebuild a house is what constitutes the replacement cost.
Myth: There are specific methods that real estate appraisers use to determine the opinion of value of a house, such as the price per square foot.
Fact: Appraisers complete an exhaustive analysis of all factors pertaining to the value of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable houses.
Myth: As homes increase their worth by a certain percentage - in a robust economy - the properties nearby are figured to appreciate by the same amount.
Fact: Cost increase of a specific home is always concluded on an individualized basis, factoring in information on comparable properties and other relevant elements. It makes no difference whether the economy is excellent or bad.
Have other questions about appraisers, appraising or real estate in Wake County or Raleigh, NC?Contact James Earp Appraisal Service
Myth: Just looking at what the house looks like on its exterior gives a good idea of its cost.
Fact: There are a multitude of different factors that determine the value of a house; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by inspecting the home from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the document. Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be given it by their lending company.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the needs of their lending agency.
Fact: A consumer should definitely inspect their document; there could be some questions or some worries about the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, containing an incredible amount of data - 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 area.
Myth: Appraisals are ordered only to assess real estate property values in house sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection.
Fact: An appraisal report does not serve the same purpose as an inspection. The purpose of the appraiser is to form an opinion of value in the appraisal process and through writing the report. The task of a home inspector is to determine the condition of the property and its major components, then produce a report on these conclusions.