Common myths about appraising

By law, an appraiser needs to be state-licensed to offer appraisals for federally-supported transactions. You also have the right to request a copy of the finished appraisal report from your lending agency. Contact Appraisal Professionals if you have any concerns about the appraisal procedure.

Myth: Market value should be the same as the assessed value of the property.

Fact: It could be that Texas, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not always true. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an prolonged time.

Myth: The value of a home will differ depending upon whether the appraisal is provided for the buyer or the seller.

Fact: The value of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the value of the property. What this means is he will complete his task with impartiality and objectivity regardless for whom the appraisal is created.

Myth: Any time market value is found, it should be the same as the replacement cost of the property.

Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. The dollar amount needed to rebuild a property is what forms the replacement cost.

Myth: There are certain ways that appraisers use to show the cost of a house, like the price per square foot.

Fact: An appraisal report is an assertion of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the price of recent comparable sales. You can count on Appraisal Professionals's staff to be forthright in assessing this information.

Myth: In a strong economy - when the values of properties in a given neighborhood are reported to be appreciating by a certain percentage - the values of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: All appreciation of value is on a one-on-one basis, concluded by information on relevant considerations and the data of comparable properties. This is true in excellent economic times as well as poor.

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Myth: The property's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.

Fact: There are a multitude of different factors that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived simply by looking at the house from the exterior.

Myth: Because 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 report belongs to them.

Fact: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the document. By the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given it by their lending company.

Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the needs of their lending company.

Fact: It is very important for consumers to check over a copy of their appraisal report so that they can verify the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An 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 proximity.

Myth: The only reason someone would hire an appraiser is if a house needs its worth estimated in a lender-based sales transaction.

Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series of different services including - but definitely 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. The purpose of an appraisal report is to form an opinion of fair market value during the appraisal process and the production of the appraisal report. The task of a home inspector is to approximate the condition of the home and its main components, then provide a report on these findings.