Common myths about appraising

It is enforced by the government that a real estate appraiser is required to be state-licensed to offer appraisals for federally-related home transactions in Florida. Also by law, you are allowed to demand a copy of the completed report from your lending agency. Contact Performance Appraisals Inc. if you have any questions about the appraisal procedure.

Myth: Market value will always be the same as the assessed value of the property.

Fact: It is possible that Florida, like most states, supports the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Generally when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the Ponte Vedra Beach have not been reassessed for quite a while, it may vary wildly.

Myth: The buyer or the seller will have leverage in the value of the property depending upon for whom the appraiser is working.

Fact: There is no vested interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is conducted.

Myth: The replacement cost of the home will be is on par with the market value.

Fact: Without any pressure from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. Replacement cost is the dollar amount needed to reconstruct a home in-kind.

Myth: There are specific ways that real estate appraisers use to show the opinion of value of a property, such as the price per square foot.

Fact: There are many varied methods that an appraiser will use to make a detailed investigation of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the cost of recently sold comparable properties.

Myth: When the economy is robust and the cost of properties are found to be increasing by a certain percentage, the other properties in the proximity can be expected to increase based on that same percentage.

Fact: Cost increase of a specific property must be concluded on an individualized basis, factoring in data on comparable houses and other relevant considerations. This is true in excellent economic times as well as bad.

Have other questions about appraisers, appraising or real estate in Saint Johns County or Ponte Vedra Beach, FL?

Contact Performance Appraisals Inc.

Myth: You can usually see what a property is worth simply by looking at the outside.

Fact: There are a multitude of different variables that determine property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just inspecting the property from the outside.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they own their appraisal.

Fact: The appraisal is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. However, home buyers must be provided with a copy of the report upon written request, through the Equal Credit Opportunity Act.

Myth: Consumers need not care about what is in their appraisal document so long as it satisfies the needs of their lending group.

Fact: It is almost imperative for consumers to peruse a copy of their appraisal so that they can double-check the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a near perfect record for future reference, comprised of useful and often-revealing data - including 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 estimate of the price of a property during a sales transaction involving a lending company.

Fact: Appraisers can have many varied qualifications and designations which allow them to perform a series of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: A house inspection serves the same purpose as an appraisal.

Fact: Appraisal reports are definitely not the same as a home inspection. The appraiser concludes on an opinion of value in the appraisal process and resulting document. The task of a home inspector is to find the condition of the property and its major components, then create a report on their findings.