Appraisal myths debunked
It is enforced by the government that an appraiser needs to be state-licensed to write appraisal reports for federally-supported property transactions in Arizona. The law gives you the right to get a copy of your completed appraisal from your lending agency after it has been provided. Contact ASAP Appraisal Services, Inc. if you have any concerns about the appraisal process.
Myth: Assessed value will always equate to market value.
Fact: It is possible that Arizona, like most states, validates the idea that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an prolonged time.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the opinion of value of the home will vary.
Fact: The appraiser has no personal interest in the result of the appraisal report and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should equate to replacement cost.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the house were rebuilt, the dollar amount needed to do so would be the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to figure out the value of a house.
Fact: An appraisal is an amalgamation of information based on the house's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can count on ASAP Appraisal Services, Inc.'s appraisers to be ethical in assessing this information.
Myth: As homes increase their worth by a certain percentage - in a robust economy - the homes around the appreciating properties are expected to appreciate by the same amount.
Fact: Any worth at which an appraiser arrives in regards to a certain house is always individualized, based on certain factors derived from the data of comparable houses and other considerations within the house itself. It makes no difference if the economy is good or bad.
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Myth: Just seeing what the property looks like on its exterior gives a good idea of its worth.
Fact: To conclude an accurate price beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. An outside-only inspection obviously can't provide all of the information needed.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your house, you own the provided appraisal.
Fact: Legally, the report is owned by the lending agency unless the lender relinquishes their interest in the document. However, consumers have to be provided with a copy of the document upon written request, due to the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal report contains so long as their lending agency is fine with the contents therein.
Fact: It is almost imperative for consumers to check over a copy of their appraisal so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing a great deal of information - including, but certainly 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 vicinity.
Myth: The only reason someone would hire an appraiser is if a home needs its cost estimated in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and may provide a multitude of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no reason to get an appraisal if you order a home inspection.
Fact: An appraisal does not fulfill the same purpose as an inspection. The job of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. A home inspector analyzes the condition of the property and its major components and reports their findings.