Appraisal myths debunked

It is enforced by law that an appraiser needs to be state-licensed to perform appraisals for federally-supported property purchases in California. Also by law, you have the right to demand a copy of the finished appraisal from your lender. Contact Avion Insights if you have any questions about the appraisal process.

Myth: Assessed value should be similar to to market value.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby homes are excellent examples of why this occurs.

Myth: The opinion of value of a property will change depending upon if the appraisal is provided for the buyer or the seller.

Fact: The cost of the property does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the cost of the property. This means that he will provide job with impartiality and objectivity regardless for whom the appraisal is produced.

Myth: The replacement value of the house should be is on par with the market value.

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under duress to buy or sell. If the property were rebuilt, the dollar amount required to do so would set the replacement cost.

Myth: Appraisers use a calculation, like a certain price per square foot, to come to the worth of a home.

Fact: An appraisal report is an amalgamation of information concluded from the house's size, location, proximity to some facilities, the condition of the home and the cost of recent comparable sales. You can count on Avion Insights's appraisers to be forthright in assessing this information.

Myth: As properties appreciate by a specific percentage - in a strong economic state - the houses around the appreciating properties are expected to appreciate by the same amount.

Fact: Any price at which an appraiser arrives concerning a certain home is always individualized, based on certain factors derived from the data of comparable properties and other considerations within the house itself. It makes no difference whether the economy is powerful or bad.

Myth: The house's outside is determinate of the actual price of the home; it is unnecessary to do an interior inspection.

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

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

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

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

Fact: Only if consumers examine a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an report that will probably 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.