Appraisal myths debunked
By law, an appraiser must be state-licensed to produce appraisals for federally-related transactions. The law gives you the right to acquire a copy of your completed appraisal from your lending agency after it has been produced. Contact A. M. Appraisals if you have any questions about the appraisal process.
Myth: The value that is ascertained by the appraiser will be the same as the market value.
Fact: It is possible that South Carolina, like most states, validates the common myth that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. There are times when interior remodeling has been done 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 sometimes may have an influence in the value of the property depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the result of the appraisal, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is written.
Myth: The replacement value of the house should 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 specific house, with neither being under duress to buy or sell. If the home were rebuilt, the dollar amount necessary to do so would form the replacement cost.
Myth: There are certain methods that real estate appraisers use to show the opinion of value of a home, like the price per square foot.
Fact: There are many numerous methods that an appraiser will use to make an in-depth investigation of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable properties.
Myth: As homes increase their worth by a specific percentage - in a strong economic state - the properties nearby are figured to appreciate by the same amount.
Fact: Value appreciation of a specific property is always determined on an individualized basis, factoring in data on comparable homes and other relevant 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?Contact A. M. Appraisals
Myth: Just seeing what the home looks like on its exterior gives a good idea of its value.
Fact: There are a multitude of different variables that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by examining the house from the exterior.
Myth: Since the consumer is the person who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. However, consumers have to be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the needs of their lending agency.
Fact: It is almost imperative for home buyers to peruse a copy of their report so that they can double-check the accuracy of the report, in case there is a need to question its veracity. 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 cost estimated in a lender-based sales transaction.
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: An appraisal is no different than a home inspection.
Fact: A home inspection report serves a completely different purpose than an appraisal. The point of an appraisal report is to find an opinion of fair market value during the appraisal process and the completion of the report. The job of a home inspector is to determine the condition of the property and its main components, then create a report on these inspection.
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