Appraisal myths debunked

By law, an appraiser needs to be state-licensed to perform appraisals for federally-supported sales. The law allows you to get a copy of your completed appraisal from your lender after it has been provided. Contact Young Appraisal Company, Inc. if you have any concerns about the appraisal procedure.

Myth: The value that is assessed by the appraiser must be the same as the market value.

Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby houses are exact examples of why there might be a differential in price.

Myth: The buyer or the seller sometimes may have leverage in the value of the house depending upon for whom the appraiser is working.

Fact: The appraised value of the property does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the value of the home. Obviously, he will complete his task with impartiality and independence regardless for whom the appraisal is conducted.

Myth: The replacement cost of the property is always is on par with the market value.

Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a home without being under duress from any external party to purchase or sell. The dollar amount demanded to reconstruct a house is what forms the replacement cost.

Myth: Appraisers use a formula, like a certain price per square foot, to come to the worth of a house.

Fact: An appraisal report is an assertion of information concluded from the property's size, location, proximity to specific facilities, the condition of the home and the value of recent comparable sales. You can rely on Young Appraisal Company, Inc.'s appraisers to be professional in assessing this data.

Myth: As homes appreciate by a specific percentage - in a robust economy - the properties in proximity are figured to appreciate by the same amount.

Fact: All appreciation of worth is on an individual basis, found by information on relevant elements and the data of comparable properties. This is true in excellent economic times as well as poor.

Myth: Just looking at what the home looks like on its exterior gives a good idea of its worth.

Fact: Property value is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just inspecting the house from the outside.

Myth: Since the consumer is the one who puts up the funding to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal belongs to them.

Fact: Legally, the appraisal report is owned by the lending company unless the lender releases their interest in the document. Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be provided with one by their lending agency.

Myth: There's no point for consumers to even care about what the report contains so long as their lending company is fine with the contents therein.

Fact: Only if home buyers read a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information stored in an report that will probably be useful to the consumer in the future, such as 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 region.