Appraisal myths debunked

It is mandated by legal agencies that a real estate appraiser needs to be state-licensed to produce appraisal reports for federally-related real estate transactions in Florida. You also have the right to receive a copy of the finished report from your lending agency. Contact Performance Appraisals Inc. if you have any questions about the appraisal process.

Myth: Market value has to be equivocal to the assessed value of the property.

Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby properties are perfect examples of why there might be a differential in price.

Myth: The appraised value of a home will vary depending upon whether the appraisal is conducted for the buyer or the seller.

Fact: The opinion of value of the house does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the value of the house. Obviously, he will complete his job with impartiality and objectivity regardless for whom the appraisal is created.

Myth: The replacement cost of the property is always is on par with the market value.

Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific property. The replacement cost is the dollar amount needed to reconstruct a house in-kind.

Myth: There are certain ways that appraisers use to find the value of a property, like the price per square foot.

Fact: Appraisers make a full analysis of all factors pertaining to the worth of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable houses.

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

Fact: Any price at which an appraiser concludes in regards to a certain home is always personalized, based on certain factors pulled from the information of comparable properties and other considerations within the property itself. It makes no difference if the economy is robust or poor.

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 often find what a property is worth simply by looking at the exterior.

Fact: To find an accurate price beyond all doubt, an appraiser must examine the property on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection definitely can't provide all of the information required.

Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance real estate, they own their appraisal.

Fact: Unless a lender releases its interest in the report, it is legally owned by the lending agency that ordered the appraisal. Because of the Equal Credit Opportunity Act, any consumer requesting a copy of the report must be provided with it by their lending agency.

Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lender is fine with the contents therein.

Fact: A home buyer should definitely read through their report; there may be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information contained in an 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 area.

Myth: Appraisers are hired only to assess house values in property sales involving mortgage-lending deals.

Fact: Hiring an appraiser can fulfill a variety of requirements 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: There's no need to get an appraisal if you have had a home inspection.

Fact: A home inspection report has a completely different purpose than an appraisal. An appraiser finds an opinion of value in the appraisal process and resulting appraisal. A home inspector analyzes the condition of the building and its main components and reports these findings.