Common myths about appraising
It is mandated by legal agencies that an appraiser needs to be state-licensed to offer appraisals for federally-related real estate transactions in Florida. The law allows you to receive a copy of your finished appraisal from your lender after it has been provided. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser should be the same as the market value.
Fact: It is possible that Florida, like most states, supports the suggestion that the assessed value equates to the market value; however, this is not often the case. Often when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the area have not been reassessed for years or more, it may vary wildly.
Myth: Depending on if the appraisal is drawn up for the buyer or the seller, the value of the property will vary.
Fact: There is no personal interest on the part of the appraiser in the result of the appraisal, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is ordered.
Myth: Market value should equate to replacement cost.
Fact: Without any suggestion from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific property. Replacement value is the dollar amount required to reconstruct a home in-kind.
Myth: There are certain methods that appraisers use to show the cost of a property, such as the price per square foot.
Fact: Appraisers make a comprehensive analysis of all factors in consideration to the price of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.
Myth: As houses increase their worth by a certain percentage - in a robust economic state - the homes nearby are expected to appreciate by the same amount.
Fact: All increase of worth is on an individual basis, found by information on relevant considerations and the data of comparable homes. This is true in fair economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Saint Johns County or Ponte Vedra Beach, FL?Contact Performance Appraisals Inc.
Myth: The home's outside is determinate of the actual worth of the house; it is unnecessary to do an interior appraisal.
Fact: There are a multitude of different variables that conclude property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply examining the property from the exterior.
Myth: Considering that the consumer is the party who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. However, home buyers must be provided with a copy of the appraisal report upon written request, due to the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the necessities of their lending agency.
Fact: It is a very good idea for consumers 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 veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, comprised of helpful 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: The only reason someone would order an appraisal is if a house needs its cost estimated in a lender sales transaction.
Fact: Appraisers can have many different 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 order a home inspection.
Fact: Appraisal reports are definitely not the same as a home inspection. An appraiser forms an opinion of value in the appraisal process and resulting report. The point of a home inspector is to determine the condition of the property and its main components, then create a report on these findings.