Appraisal myths debunked

By law, an appraiser needs to be state-licensed to offer appraisals for federally-backed transactions. You also have the right to demand a copy of the completed report from your lending agency. Contact Phoenix Valuations, LLC if you have any questions about the appraisal process.

Myth: Assessed value generally will be equal to market value.

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has occurred and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an extended time.

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

Fact: The appraiser has no personal interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

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

Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain house, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount necessary to rebuild a home in-kind.

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

Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to specific facilities, the condition of the house and the worth of recent comparable sales. You can count on Phoenix Valuations, LLC's staff to be honest in assessing this data.

Myth: When the economy is robust and the worth of properties are reported to be rising by a certain percentage, the other houses in the neighborhood can be expected to rise based on that same percentage.

Fact: Worth appreciation of a specific home is always concluded on a case-by-case basis, factoring in data on comparable homes and other relevant considerations. It makes no difference whether the economy is strong or poor.

Myth: You can generally find what a home is worth simply by looking at the outside.

Fact: There are a number of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by examining the property from the outside.

Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance your home, you own the ordered appraisal.

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending company that ordered the appraisal. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be provided with one by their lender.

Myth: It doesn't concern consumers what's in the report so long as it meets the requirements of their lending agency.

Fact: A consumer should definitely inspect their appraisal; there could be some questions or some worries with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, comprised of helpful and often-revealing information - 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 vicinity.