Appraisal myths & facts
It is enforced by legal agencies that a real estate appraiser needs to be state-licensed to write appraisals for federally-related home transactions in South Carolina. Also by law, you are entitled to receive a copy of the finished report from your lending agency. Contact A. M. Appraisals if you have any concerns about the appraisal procedure.
Myth: Assessed value should always be similar to to market value.
Fact: While most states back the idea that assessed value equates estimated market value, this generally is not the case. Usually when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the area have not been reassessed for quite a while, it may vary wildly.
Myth: The appraised value of a home will differ depending upon whether the appraisal is ordered for the buyer or the seller.
Fact: The price of the property does not affect the salary of the appraiser; as a result, the appraiser has no preconceived interest in the worth of the home. What this means is he will provide services with impartiality and independence regardless for whom the appraisal is provided.
Myth: Market value will equate to replacement cost.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under pressure from any external party to purchase or sell. Replacement cost is the dollar amount needed to reconstruct a house in-kind.
Myth: There are specific methods that appraisers use to determine the value of a property, like the price per square foot.
Fact: An appraisal is an amalgamation of data based on the property's size, location, proximity to specific facilities, the condition of the home and the value of recent comparable sales. You can rely on A. M. Appraisals's staff to be honest in assessing this information.
Myth: As homes appreciate by a certain percentage - in a strong economy - the homes around the appreciating properties are expected to appreciate by the same amount.
Fact: Any worth at which an appraiser arrives in regards to a specific house is always personalized, based on certain factors derived from the data of comparable homes and other considerations within the property itself. This is true in strong economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Lexington County or West Columbia, SC?Contact us
Myth: Just examining what the property looks like on the outside gives an excellent idea of its value.
Fact: To determine an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. An exterior inspection obviously can't provide all of the information needed.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their property, they own their appraisal report.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. Consumers must be provided with a copy of the report through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it satisfies the requirements of their lending agency.
Fact: Only if consumers examine a copy of their appraisal can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data stored in an appraisal report that will probably 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: There is no reason to order an appraisal unless you are trying to get an assessment of the worth of a house during a sales transaction involving a lender.
Fact: Depending upon their qualifications and designations, appraisers can and do perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is the same as a home inspection report.
Fact: A home inspection serves a completely different purpose than an appraisal report. The task of the appraiser is to come to an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will show the condition of the home and its major components and possible damage.
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