Appraisal myths debunked

By law, an appraiser needs to be state-licensed to produce appraisals for federally-backed purchases. You are also entitled by law to receive a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal process.

Myth: Assessed value generally will be the same as to market value.

Fact: It could be that New York, like most states, supports the suggestion that the assessed value equals the market value; however, this is not always true. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an prolonged time.

Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the appraised value of the home will vary.

Fact: The appraised value of the home does not affect the payment of the appraiser; due to this, the appraiser has no vested interest in the opinion of value of the house. This means that he will conduct task with impartiality and independence regardless for whom the appraisal is provided.

Myth: The replacement cost of the house will be is on par with the market value.

Fact: The way market value is derived is based on what a home buyer would likely pay a willing seller for a property without being under duress from any outside group to purchase or sell. Replacement cost is the dollar amount necessary to rebuild a house in-kind.

Myth: There are specific methods that real estate appraisers use to find the cost of a home, like the price per square foot.

Fact: Appraisers make an exhaustive analysis of all factors in consideration to the cost of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.

Myth: When the economy is on the rise and the sales prices of properties are reported to be rising by a certain percentage, the other houses in the proximity can be expected to rise based on that same percentage.

Fact: All appreciation of price is on a one-on-one basis, concluded by information on relevant elements and the data of comparable properties. This is true in excellent economic times as well as bad.

Have other questions about appraisers, appraising or real estate in Queens County or Jamaica Estates, NY?

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Myth: The house's exterior is determinate of the actual price of the house; it is unnecessary to do an interior appraisal.

Fact: House value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by looking at the home from the outside.

Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their home, they own their appraisal report.

Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. However, home buyers must be supplied with a copy of the report upon written request, under the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even worry about what the appraisal contains so long as their lending agency is fine with the contents therein.

Fact: A consumer should definitely look through their appraisal report; there could be some questions or some concerns with 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 an incredible amount of information stored in an appraisal report that will probably 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 hire an appraiser unless you are trying to get an assessment of the cost of a home during a sales transaction involving a lender.

Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: You don't need to get an appraisal if you get a home inspection.

Fact: An appraisal does not fulfill the same purpose as an inspection report. The purpose of the appraiser is to find an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the building and its major components and reports these findings.