Appraisal myths & facts
By law, an appraiser must be state-licensed to offer appraisals for federally-related transactions. You have the ability to request a copy of the completed appraisal from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be exactly the same as the market value.
Fact: It is probable that Oklahoma, like most states, validates the idea that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Often when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the area have not been reassessed for quite a while, it may vary wildly.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the house will vary.
Fact: The cost of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the value of the house. What this means is he will complete his services with impartiality and independence regardless for whom the appraisal is produced.
Myth: The replacement cost of the house will be is on par with the market value.
Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a house without being under pressure from any outside party to buy or sell. If the house were rebuilt, the dollar amount needed to do so would be the replacement cost.
Myth: Specific methods, like the price per square foot of the property, are the ways appraisers use to determine the price of a home.
Fact: There are many numerous ways that an appraiser will use to make an in-depth investigation 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 doing well and the cost of houses are found to be appreciating by a certain percentage, the other houses in the proximity can be expected to rise based on that same percentage.
Fact: Any value at which an appraiser arrives concerning a particular house is always personalized, based on certain factors concluded from the data of comparable homes and other considerations within the home itself. This is true in strong economic times as well as poor.
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Myth: Just seeing what the house looks like on its exterior gives an idea of its cost.
Fact: Home worth is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be derived just by inspecting the home from the exterior.
Myth: Because consumers pay for appraisal reports when applying for loans to purchase or refinance their house, they own their appraisal report.
Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the document. Home buyers must be given a version of the document through request because of the Equal Credit Opportunity Act.
Myth: Consumers need not worry about what is in their appraisal so long as it satisfies the needs of their lending group.
Fact: A home buyer should definitely inspect their appraisal report; there may be some questions or some worries with the accuracy of the appraisal report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a valuable record for future reference, containing useful and often-revealing information - including, but 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 proximity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a home during a sales transaction involving a lender.
Fact: Ordering an appraisal can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you order a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection. The point of an appraisal report is to arrive at an opinion of fair market value during the appraisal process and the completion of the report. House inspectors will write a report that will express the condition of the property and its major components and possible damage.