Appraisal myths & facts

Legally, an appraiser must be state certified to perform substantiated real estate appraisals for federally-related sales. Also by law, you are allowed to receive a copy of the finished appraisal report from your lending agency. Contact BK Appraisal Services if you have any questions about the appraisal procedure.

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

Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Often when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the Virginia Beach have not been reassessed for years or more, it may vary wildly.

Myth: The value of a house will be different depending upon whether the appraisal is ordered for the buyer or the seller.

Fact: The value of the property does not affect the payment of the appraiser; as a result, the appraiser has no vested interest in the value of the home. This means that he will provide job with impartiality and independence regardless for whom the appraisal is produced.

Myth: Any time market value is found, it should be similar to the replacement cost of the property.

Fact: The way market value is arrived at is based on what a buyer would be willing to pay a willing seller for a house without being under influence from any external party to buy or sell. Replacement value is the dollar amount necessary to reconstruct a house in-kind.

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

Fact: Appraisers make a detailed analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent opinion of value of comparable properties.

Myth: In a strong economy - when the prices of houses in a given area are found to be rising by a particular percentage - the costs of individual houses in the proximity can be expected to appreciate by that same percentage.

Fact: Any worth at which an appraiser arrives concerning a specific home is always individualized, based on certain factors found from the data of comparable homes and other specifications within the house itself. It makes no difference if the economy is excellent or poor.

Myth: Just seeing what the home looks like on its exterior gives an excellent idea of its worth.

Fact: There are a multitude of different factors that show the value of a home; these factors include area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data necessary.

Myth: Because consumers fund appraisals when applying for loans to buy or refinance real estate, they legally own their appraisal.

Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the document. Consumers have to be supplied with a version of the document upon written request as per the Equal Credit Opportunity Act.

Myth: Home buyers need not care about what is in their appraisal document so long as it exceeds the requirements of their lending agency.

Fact: It is a very good idea for home buyers to check over a copy of their report so that they can double-check 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 appraisal report makes a valuable record for future reference, containing helpful 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 proximity.