Appraisal myths & facts
By law, an appraiser is required to be state-licensed to perform appraisals for federally-supported purchases. Also by law, you have the right to request a copy of the completed appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value should be equivocal to the assessed value of the property.
Fact: While most states back the suggestion that assessed value equates estimated market value, this commonly is not the case. There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Omaha have not been reassessed for a good length of time, it may vary wildly.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the home will vary.
Fact: The cost of the house does not affect the salary of the appraiser; due to this, the appraiser has no personal interest in the opinion of value of the property. Obviously, he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is found, it should be similar to the replacement cost of the home.
Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount demanded to reconstruct a home is what forms the replacement cost.
Myth: Specific methods, like the price per square foot of the property, are the ways appraisers use to arrive at the worth of a home.
Fact: Appraisers make a detailed analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable homes.
Myth: When the economy is on the rise and the worth of homes are reported to be rising by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Fact: Any cost at which an appraiser concludes in regards to a particular home is always personalized, based on certain factors derived from the information of comparable houses and other considerations within the property itself. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Douglas County or Omaha, NE?Contact our professional staff
Myth: The house's exterior is determinate of the actual price of the property; there is no need to do an interior inspection.
Fact: There are a multitude of different factors that determine the value of a house; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information needed.
Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they legally own their appraisal.
Fact: Legally, the document is owned by the lender unless the lender relinquishes their interest in the appraisal. Due the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given one by their lending company.
Myth: It doesn't concern consumers what's in the appraisal so long as it satisfies the necessities of their lender.
Fact: A home buyer should definitely look through their document; there might be some questions or some concerns about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information 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 proximity.
Myth: Appraisers are hired only to assess building values in home sales involving mortgage-lending deals.
Fact: Depending upon their qualifications and designations, appraisers can and often do provide a variety of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no reason to get an appraisal if you have had a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser concludes on an opinion of value in the appraisal process and resulting report. A home inspector assesses the condition of the home and its main components and reports their findings.