Common myths about appraising
Legally, an appraiser has to be state certified to perform substantiated appraisal reports for federally-related sales. Also by law, you are allowed to demand a copy of the completed appraisal report from your lender. Contact us if you have any questions about the appraisal process.
Myth: The value that is ascertained by the appraiser must 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 reconstruction has happened and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged period of time.
Myth: Depending on if the appraisal is written for the buyer or the seller, the cost of the house will vary.
Fact: The price of the home does not affect the payment of the appraiser; as such, the appraiser has no pressured interest in the worth of the house. Obviously, he will conduct services with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Market value will be the same as replacement cost.
Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. Replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a home.
Fact: An appraisal report is a collection of data concluded from the home's size, location, proximity to specific facilities, the condition of the property and the value of recent comparable sales. You can depend on TSH Real Estate and Appraisal Services, LLC's staff to be ethical in assessing this data.
Myth: As houses increase their worth by a certain percentage - in a robust economy - the properties around the appreciating properties are figured to appreciate by the same amount.
Fact: Any cost at which an appraiser concludes concerning a certain house is always individualized, based on certain factors concluded from the data of comparable properties and other specifications within the house itself. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Honolulu County or Kaneohe, HI?Contact TSH Real Estate and Appraisal Services, LLC
Myth: You can often see what a home is worth simply by looking at the outside.
Fact: There are a number of different variables that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just looking at the property from the outside.
Myth: Considering that the consumer is the one who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Legally, the appraisal report is owned by the lender unless the lender releases their interest in the appraisal. Home buyers must be supplied with a copy of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their report so long as it exceeds the needs of their lending company.
Fact: It is a very good idea for home buyers to peruse a copy of their appraisal so that they can verify the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, comprised of useful and often-revealing data - 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 vicinity.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a house during a sales transaction involving a lending agency.
Fact: Appraisers can have many varied qualifications and designations which allow them to provide a multitude 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: You shouldn't need to get an appraisal if you get a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection report. The task of the appraiser is to form an opinion of value in the appraisal process and through writing the report. The job of a home inspector is to determine the condition of the home and its main components, then compose a report on their inspection.