Appraisal myths debunked
It is mandated by law that an appraiser is required to be state-licensed to perform appraisal reports for federally-supported property purchases in Washington. You are also entitled by law to acquire a copy of the completed report from your lending agency. Contact Anderson & Associates if you have any questions about the appraisal process.
Myth: Assessed value generally will be similar to to market value.
Fact: It is possible that Washington, like most states, validates the common myth that the assessed value equals the market value; however, this is not always true. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby properties are exact examples of why there might be a differential in price.
Myth: The buyer or the seller can have some pull in the value of the home depending upon for whom the appraiser is working.
Fact: The value of the property does not affect the payment of the appraiser; as such, the appraiser has no preconceived interest in the worth of the home. This means that he will provide services with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Any time market value is established, it should equal the replacement cost of the house.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under influence from any outside group to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.
Myth: Appraisers use a formula, such as a certain price per square foot, to come to the worth of a home.
Fact: There are many numerous ways that an appraiser will use to make a full analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable homes.
Myth: When the economy is robust and the worth of homes are reported to be appreciating by a certain percentage, the other properties in the vicinity can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors derived from the data of comparable homes and other specifications within the property itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Clark County or Vancouver, WA?Contact Anderson & Associates
Myth: You can generally tell what a house is worth simply by looking at the outside.
Fact: There are a number of different factors that conclude property value; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found just by inspecting the home from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal.
Fact: Legally, the document is owned by the lending company unless the lender releases their interest in the appraisal. Home buyers have to be supplied with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal so long as it meets the requirements of their lending institution.
Fact: A home buyer should definitely look through their appraisal; there will probably be some questions or some worries about the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in an appraisal report that can 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: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a home during a sales transaction involving a lender.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You don't need to get an appraisal if you have had a home inspection.
Fact: A home inspection has a completely different purpose than an appraisal. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. A home inspector determines the condition of the home and its major components and reports their findings.