Appraisal myths debunked

It is required by law that an appraiser needs to be state-licensed to produce appraisal reports for federally-supported home transactions in South Carolina. The law entitles you to acquire a copy of your finished appraisal report from your lending agency after it has been produced. Contact our professional staff if you have any concerns about the appraisal procedure.

Myth: Market value must be equivocal to the assessed value of the property.

Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when houses in the vicinity have not been reassessed for an extended time.

Myth: Depending on whether the appraisal is provided for the buyer or the seller, the opinion of value of the house will vary.

Fact: The price 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 property. Obviously, he will provide job with impartiality and objectivity regardless for whom the appraisal is produced.

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

Fact: Without any pressure from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount needed to reconstruct a property is what forms the replacement cost.

Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a property.

Fact: There are many different methods that an appraiser will use to make a full analysis of every factor pertaining to the home, such as the size, location, condition, how close it is to certain facilities and the worth of recently sold comparable houses.

Myth: In a strong economy - when the prices of properties in a given county are found to be appreciating by a particular percentage - the values of individual homes in the proximity can be expected to increase by that same percentage.

Fact: Any price at which an appraiser concludes in regards to a certain home is always individualized, based on certain factors pulled from the information of comparable homes and other specifications within the house itself. It doesn't matter if the economy is doing well or declining.

Have other questions about appraisers, appraising or real estate in Lexington County or West Columbia, SC?

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Myth: You can often find what a house is worth simply by looking at the outside.

Fact: Home value is concluded by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just viewing the house from the exterior.

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, by law the appraisal belongs to them.

Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. However, consumers must be given 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 report so long as it meets the needs of their lending company.

Fact: It is very important for consumers to look at a copy of their report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored 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 region.

Myth: The only reason someone would order an appraisal is if a home needs its worth estimated in a lender-based sales transaction.

Fact: Depending upon their qualifications and designations, appraisers can and often do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: You shouldn'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 appraiser decides upon an opinion of value in the appraisal process and resulting document. House inspectors will write a report that will determine the condition of the home and its major components and possible damage.

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