Common myths about appraising

Legally, a real estate appraiser must be state certified to write legitimate appraisal reports for federally-supported purchase. Also by law, you have the ability to request a copy of the completed appraisal report from your lending agency. Contact us if you have any concerns about the appraisal procedure.

Myth: Market value will be similar to the assessed value of the property.

Fact: While most states back the suggestion that assessed value approximates estimated market value, this commonly is not the case. Usually when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the Beaver Falls have not been reassessed for a good length of time, it may vary wildly.

Myth: The appraised value of a property will change depending upon if the appraisal is conducted for the buyer or the seller.

Fact: There is no vested interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is ordered.

Myth: The replacement value of the home should be is on par with the market value.

Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific property. If the home were reconstructed, the dollar amount required to do so would make up the replacement cost.

Myth: There are specific methods that appraisers use to determine the opinion of value of a home, like the price per square foot.

Fact: Appraisers complete an exhaustive analysis of all factors pertaining to the price of a property, including its location, condition, size, proximity to facilities and recent values of comparable houses.

Myth: As homes appreciate by a certain percentage - in a robust economy - the homes within the same neighborhood are expected to increase by the same amount.

Fact: Any value at which an appraiser concludes concerning a particular house is always individualized, based on certain factors concluded from the information of comparable homes and other considerations within the house itself. It makes no difference whether the economy is strong or poor.

Myth: Just looking at what the house looks like on the outside gives an excellent idea of its worth.

Fact: There are a number of different variables that conclude 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 inspecting the home from the exterior.   Also, there are many important items inside the dwelling as well.

Myth: Since the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal belongs to them.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given it by their lending agency.

Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the necessities of their lending agency.

Fact: A home buyer should definitely inspect their report; there will probably be some questions or some worries with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, comprised of helpful 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.