Common myths about appraising

It is required by the government that an appraiser is required to be state-licensed to write appraisals for federally-related home transactions in California. You are also entitled by law to receive a copy of the completed report from your lender. Contact Savery Appraisal Services, Inc. if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser must be equivalent to the market value.

Fact: While most states support the suggestion that assessed value equates estimated market value, this often is not the case. At times when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.

Myth: The value of a property will differ depending upon whether the appraisal is produced for the buyer or the seller.

Fact: The appraised value of the property does not affect the pay of the appraiser; due to this, the appraiser has no pressured interest in the cost of the property. Obviously, he will provide task with impartiality and objectivity regardless for whom the appraisal is created.

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

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

Myth: Appraisers use a formula, like a specific price per square foot, to come to the value of a house.

Fact: An appraisal is an assertion of information based on the property's size, location, proximity to some facilities, the condition of the house and the worth of recent comparable sales. You can rely on Savery Appraisal Services, Inc.'s staff to be professional in assessing this data.

Myth: As homes increase their worth by a certain percentage - in a strong economy - the houses around the appreciating properties are expected to appreciate by the same amount.

Fact: All increase of value is on a one-on-one basis, determined by information on relevant conditions and the data of comparable homes. It doesn't matter if the economy is doing well or declining.

Myth: You can generally see what a home is worth simply by looking at the exterior.

Fact: Home worth is determined by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information needed.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their home, they own their appraisal report.

Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the document. However, home buyers must be given a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the necessities of their lender.

Fact: A consumer should definitely read through their document; there may be some questions or some worries with the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect record for future reference, comprised of helpful 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.