Appraisal myths debunked

Legally, an appraiser must be state certified to create legitimate real estate appraisals for federally-backed transactions. The law gives you the right to receive a copy of your completed report from your lending agency after it has been produced. Contact JGB Appraisals LLC if you have any concerns about the appraisal procedure.

Myth: Assessed value will always be equal to market value.

Fact: While most states back the idea that assessed value is equal to estimated market value, this usually is not the case. Sometimes when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the Albrightsville have not been reassessed for quite some time, it may vary wildly.

Myth: The appraised value of a house will differ depending upon if the appraisal is conducted for the buyer or the seller.

Fact: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.

Myth: Any time market value is found, it should equal the replacement cost of the house.

Fact: Without any pressure from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific house. The dollar amount necessary to rebuild a home is what forms the replacement cost.

Myth: There are certain methods that real estate appraisers use to determine the opinion of value of a property, like the price per square foot.

Fact: There are many differing methods that an appraiser will use to make an in-depth investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable homes.

Myth: In a strong economy - when the prices of homes in a given area are reported to be rising by a particular percentage - the prices of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: Price increase of a specific property must be concluded on an individualized basis, factoring in data on comparable properties and other relevant specifications within the home itself. It makes no difference if the economy is robust or bad.

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

Fact: There are a multitude of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by viewing the home from the exterior.

Myth: Since you're the one paying for the appraisal report when applying for your loan to buy or refinance your home, you own the ordered appraisal.

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

Myth: Home buyers need not care about what is in their report so long as it satisfies the needs of their lending group.

Fact: It is almost imperative for consumers to go through a copy of their appraisal so that they can double-check the accuracy of the document, 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 great deal of information stored in an appraisal report that should 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 proximity.