Common myths about appraising
It is required by law that a real estate appraiser is required to be state-licensed to create appraisal reports for federally-supported home sales in Arizona. The law allows you to get a copy of your completed appraisal report from your lending agency after it has been provided. Contact ASAP Appraisal Services, Inc. if you have any questions about the appraisal process.
Myth: Assessed value should be equal to market value.
Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.
Myth: The value of a property will differ depending upon if the appraisal is produced for the buyer or the seller.
Fact: The opinion of value of the home does not affect the pay of the appraiser; as such, the appraiser has no vested interest in the value of the house. What this means is he will render job with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is established, it should be the same as the replacement cost of the house.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a certain home, with neither being under pressure to buy or sell. Replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: Appraisers use a calculation, such as a certain price per square foot, to figure out the cost of a home.
Fact: An appraisal is a collection of data concluded from the home's size, location, proximity to some facilities, the condition of the property and the price of recent comparable sales. You can rely on ASAP Appraisal Services, Inc.'s appraisers to be professional in assessing this information.
Myth: As homes increase their worth by a specific percentage - in a robust economy - the properties within the same neighborhood are expected to appreciate by the same amount.
Fact: Any worth at which an appraiser concludes concerning a particular home is always personalized, based on certain factors derived from the information of comparable homes and other considerations within the property itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Maricopa County or Mesa, Az?Contact ASAP Appraisal Services, Inc.
Myth: You can usually see what a house is worth simply by looking at the outside.
Fact: There are a number of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the property from the exterior.
Myth: Since you're the one funding for the appraisal when applying for your loan to purchase or refinance your house, you own the ordered appraisal.
Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending company that purchased the appraisal. However, home buyers have to be supplied with a copy of the 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 agency.
Fact: A consumer should definitely inspect their appraisal; there will probably be some questions or some worries with the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a valuable record for future reference, filled with useful and often-revealing information - including 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: The only reason someone would hire an appraiser is if a house needs its cost assessed in a lender sales transaction.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a series of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The task of the appraiser is to form an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the property and its main components and reports their findings.