Appraisal myths & facts
By law, an appraiser is required to be state-licensed to produce appraisals for federally-supported transactions. The law allows you to get a copy of your finished appraisal report from your lender after it has been provided. Contact Mike Noble Appraisals if you have any questions about the appraisal procedure.
Myth: Market value will always be the same as the assessed value of the property.
Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Usually when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Montgomery have not been reassessed for quite a while, it may vary wildly.
Myth: The opinion of value of a property will vary depending upon if the appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no personal interest in the result of the appraisal and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be similar to the replacement cost of the property.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a specific property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to rebuild a home in-kind.
Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the value of a home.
Fact: There are many numerous calculations that an appraiser will use to make an in-depth analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the cost of recently sold comparable homes.
Myth: When the economy is strong and the value of properties are reported to be rising by a certain percentage, the other properties in the proximity can be expected to increase based on that same percentage.
Fact: Any worth at which an appraiser arrives concerning a certain property is always individualized, based on certain factors derived from the information of comparable properties and other specifications within the home itself. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Elmore County or Montgomery, AL?Contact Mike Noble Appraisals
Myth: The property's exterior is determinate of the actual worth of the property; there is no need to do an interior appraisal.
Fact: Home value is determined by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just inspecting the property from the exterior.
Myth: Since you're the one providing the money for the appraisal report when applying for the loan to buy or refinance your home, you own the ordered appraisal report.
Fact: Legally, the report is owned by the lender unless the lender releases their interest in the document. Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given one by their lending agency.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the needs of their lending agency.
Fact: A home buyer should definitely inspect their appraisal report; there could be some questions or some worries about the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal that can 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 vicinity.
Myth: Appraisers are hired only to estimate house values in home sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is the same as a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal. An appraiser forms an opinion of value in the appraisal process and resulting document. The task of a home inspector is to assess the condition of the home and its major components, then create a report on these findings.