Legally, an appraiser has to be state certified to produce legitimate appraisal reports for federally-supported transactions. You also have the right to acquire a copy of the finished report from your lending agency. Contact Joseph Mier & Associates if you have any concerns about the appraisal process.
Common myths about appraising
Myth: Market value needs to be the same as the assessed value of the property.
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. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby properties are prime examples of why the price can vary.
Myth: The buyer or the seller sometimes may have an influence in the cost of the house depending upon for whom the appraiser is working.
Fact: The price of the property does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the value of the property. Obviously, he will conduct task with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: The replacement cost of the home should be is on par with the market value.
Fact: The way market value is derived is based on what a buyer would be willing to pay a willing seller for a house without being under pressure from any external party to purchase or sell. The dollar amount demanded to reconstruct a property is what constitutes the replacement cost.
Myth: Specific formulae, like the price per square foot of the property, are the methods appraisers use to determine the price of a house.
Fact: Appraisers make a full analysis of all factors pertaining to the price of a house, including its location, condition, size, proximity to facilities and recent values of comparable homes.
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Myth: You can commonly tell what a property is worth simply by looking at the exterior.
Fact: House worth is concluded by a multitude of factors, including area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived simply by looking at the property from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the document must be provided with it by their lending agency.
Myth: It doesn't concern consumers what's in the report so long as it satisfies the needs of their lending agency.
Fact: It is very important for consumers to peruse 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. An appraisal can serve as a record for the future, containing an incredible amount of information – including, but certainly 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 vicinity.
Myth: The only reason someone would order an appraisal is if a house needs its cost estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is the same as a home inspection report.
Fact: An appraisal does not serve the same purpose as an inspection. The task of the appraiser is to form an opinion of value in the appraisal process and through producing the report. The task of a home inspector is to find the condition of the house and its major components, then create a report on their conclusions.