Common myths about appraising
It is mandated by legal agencies that a real estate appraiser needs to be state-licensed to perform appraisal reports for federally-supported home transactions in Arizona. Also by law, you are allowed to demand a copy of the finished report from your lending agency. Contact us if you have any concerns about the appraisal process.
Myth: Assessed value should always equate 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. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby houses are perfect examples of why this occurs.
Myth: The buyer or the seller can have some pull in the value of the property depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the result of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value should equate to replacement cost.
Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. Replacement value is the dollar amount required to reconstruct a home in-kind.
Myth: Specific formulae, such as the price per square foot, are what appraisers use to come to the value of a property.
Fact: An appraisal is a collection of data based on the house's size, location, proximity to some facilities, the condition of the house and the price of recent comparable sales. You can rely on ASAP Appraisal Services, Inc.'s staff to be honest in assessing this information.
Myth: In a robust economy - when the sales prices of homes in a given neighborhood are reported to be appreciating by a particular percentage - the prices of individual properties in the proximity can be expected to increase by that same percentage.
Fact: Any worth at which an appraiser arrives in regards to a particular home is always individualized, based on certain factors derived from the information of comparable homes and other specifications within the house itself. It makes no difference if the economy is strong or on the decline.
Have other questions about appraisers, appraising or real estate in Maricopa County or Mesa, Az?Contact us
Myth: Just seeing what the home looks like on the outside gives a good idea of its worth.
Fact: Property value is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information required.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their property, they legally own their appraisal report.
Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. However, consumers must be given a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the requirements of their lending agency.
Fact: A consumer should definitely inspect their report; there will probably be some questions or some worries about the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable record for future reference, filled with helpful and often-revealing 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: There is no reason to order an appraisal unless you are trying to get an estimate of the price of a home during a sales transaction involving a lending company.
Fact: Based upon their qualifications and designations, appraisers can and do provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you get a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. The job of a home inspector is to assess the condition of the house and its main components, then write a report on their findings.