Appraisal myths & facts

Legally, a real estate appraiser is required to be state certified to create legitimate real estate appraisals for federally-related purchase. The law entitles you to get a copy of your completed report from your lending agency after it has been produced. Contact Yahara Appraisals LLC if you have any questions about the appraisal procedure.

Myth: Assessed value should be equal to market value.

Fact: While most states uphold the idea that assessed value is the same as estimated market value, this generally is not the case. Interior remodeling that the assessor is not aware of and a lack of reassessment on nearby homes are excellent examples of why the price can vary.

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the home will vary.

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

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

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell. If the home were rebuilt, the dollar amount necessary to do so would be the replacement cost.

Myth: Specific formulae, like the price per square foot, are what appraisers use to determine the cost of a house.

Fact: An appraisal report is a collection of data concluded from the house's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can count on Yahara Appraisals LLC's appraisers to be honest in assessing this information.

Myth: When the economy is robust and the value of homes are found to be increasing by a certain percentage, the other houses in the area can be expected to rise based on that same percentage.

Fact: Price appreciation of a specific property has to be determined on a case-by-case basis, factoring in data on comparable houses and other relevant specifications within the property itself. It doesn't matter if the economy is on the rise or declining.

Myth: The property's outside is determinate of the actual price of the property; there is no need to do an interior inspection.

Fact: House value is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the information necessary.

Myth: Since you're the one providing the money for the appraisal when applying for the loan to buy or refinance your home, you own the produced appraisal.

Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the report. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with it by their lending agency.

Myth: Home buyers need not worry about what is in their appraisal so long as it satisfies the necessities of their lending agency.

Fact: Only if home buyers read a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing an exorbitant amount of 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 area.