Appraisal myths debunked
It is enforced by legal agencies that an appraiser is required to be state-licensed to create appraisals for federally-related real estate transactions in Florida. Also by law, you are entitled to request a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value will always equate to market value.
Fact: It is probable that Florida, like most states, validates the suggestion that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: The value of a property will differ depending upon if the appraisal is provided for the buyer or the seller.
Fact: The cost of the home does not affect the payment of the appraiser; as a result, the appraiser has no vested interest in the worth of the house. This means that he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the home will be is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a home without being under influence from any external party to purchase or sell. The dollar amount demanded to rebuild a home is what forms the replacement cost.
Myth: Appraisers use a calculation, such as a certain price per square foot, to conclude the cost of a property.
Fact: An appraisal 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 depend on Real Analytics, Inc.'s appraisers to be honest in assessing this data.
Myth: As homes appreciate by a certain percentage - in a robust economy - the homes around the appreciating properties are figured to appreciate by the same amount.
Fact: Any cost at which an appraiser arrives concerning a specific home is always individualized, based on certain factors found from the data of comparable properties and other considerations within the house itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Brevard County or Indian River County, FL?Contact our professional staff
Myth: Just seeing what the house looks like on the outside gives a good idea of its worth.
Fact: To find an accurate value beyond all doubt, an appraiser must assess the property on a variety of factors based on area, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data required.
Myth: Because the consumer is the party who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Legally, the document is owned by the lending company unless the lender releases their interest in the appraisal. Home buyers have to be supplied with a copy of the report upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal so long as it meets the necessities of their lending agency.
Fact: Only if consumers examine a copy of their appraisal report can they verify 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 a wealth of information stored in an report that should be useful to the home buyer 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a house during a sales transaction involving a lending institution.
Fact: Depending upon their qualifications and designations, appraisers can and will provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: A home inspection report has a completely different purpose than an appraisal report. The reason behind an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the production of the appraisal. A home inspector determines the condition of the house and its major components and reports their findings.