Appraisal myths & facts
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-supported purchases. The law entitles you to get a copy of your finished appraisal report from your lender after it has been produced. Contact us if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser is required to be the same as the market value.
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. At times when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller often will have an influence in the value of the property depending upon for whom the appraiser is working.
Fact: The appraiser has no vested interest in the outcome of the appraisal report and should complete his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: The replacement value of the house will be is on par with the market value.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under undue influence to buy or sell. The dollar amount demanded to rebuild a house is what shows the replacement cost.
Myth: There are certain methods that appraisers use to find the opinion of value of a house, such as the price per square foot.
Fact: An appraisal is an assertion of data based on the home's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can depend on Sirius Appraisal Services's appraisers to be professional in assessing this information.
Myth: As properties appreciate by a specific percentage - in a strong economy - the homes nearby are expected to increase by the same amount.
Fact: All appreciation of value is on an individual basis, concluded by information on relevant considerations and the data of comparable properties. It makes no difference whether the economy is powerful or on the decline.
Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?Contact Sirius Appraisal Services
Myth: You can generally tell what a property is worth simply by looking at the outside.
Fact: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just viewing the home from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Fact: Legally, the report is owned by the lending agency unless the lender releases their interest in the report. However, consumers have to be provided with a copy of the document upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal document so long as it exceeds the necessities of their lending company.
Fact: It is very important for consumers to peruse a copy of their report so that they can verify the accuracy of the report, in case it's required 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, since it contains an incredible amount of data - 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a property during a sales transaction involving a lending company.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. The reason behind an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the production of the appraisal report. The task of a home inspector is to approximate the condition of the home and its major components, then compose a report on these conclusions.