Common myths about appraising

By law, an appraiser must be state-licensed to perform appraisals for federally-backed sales. You have the ability to acquire a copy of the completed report from your lender. Contact Savery Appraisal Services, Inc. if you have any questions about the appraisal process.

Myth: The value that is assessed by the appraiser is required to be exactly the same as the market value.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior remodeling has happened and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an extended period.

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

Fact: The appraiser has no vested interest in the outcome of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is written.

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

Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under undue influence to buy or sell. If the house were reconstructed, the dollar amount required to do so would set the replacement cost.

Myth: There are specific ways that real estate appraisers use to find the opinion of value of a house, like the price per square foot.

Fact: An appraisal is a collection of information concluded from the property's size, location, proximity to some facilities, the condition of the home and the value of recent comparable sales. You can depend on Savery Appraisal Services, Inc.'s appraisers to be ethical in assessing this data.

Myth: When the economy is strong and the cost of properties are reported to be rising by a certain percentage, the other houses in the vicinity can be expected to rise based on that same percentage.

Fact: All increase of value is on a one-on-one basis, found by information on relevant considerations and the data of comparable properties. It makes no difference whether the economy is strong or poor.

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Myth: Just examining what the home looks like on the outside gives a good idea of its value.

Fact: Home worth is concluded by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data necessary.

Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal report.

Fact: Legally, the appraisal is owned by the lending agency unless the lender relinquishes their interest in the report. By the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be given one by their lending agency.

Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the requirements of their lender.

Fact: A consumer should definitely look through their document; there will probably be some questions or some worries about the accuracy of the analysis that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored in an appraisal that could 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 area.

Myth: The only reason someone would hire an appraiser is if a house needs its price estimated in a lender-based sales transaction.

Fact: Appraisers can have many different qualifications and designations which allow them to provide a variety 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: There's no reason to get an appraisal if you get a home inspection.

Fact: An appraisal does not serve the same purpose as an inspection. The appraiser finds an opinion of value in the appraisal process and resulting document. House inspectors will compose a report that will explain the condition of the house and its major components and possible damage.

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