Common myths about appraising
It is enforced by the government that an appraiser needs to be state-licensed to produce appraisal reports for federally-supported property sales in California. You have the ability to demand a copy of the finished appraisal report from your lender. Contact WalshStreet Appraisals if you have any concerns about the appraisal procedure.
Myth: Assessed value should equate to market value.
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. At times when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller sometimes may have leverage in the cost of the house depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the pay of the appraiser; due to this, the appraiser has no preconceived interest in the cost of the property. What this means is he will provide job with impartiality and independence regardless for whom the appraisal is provided.
Myth: The replacement value of the home is always is on par with the market value.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a property without being under duress from any external party to buy or sell. Replacement value is the dollar amount required to reconstruct a house in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the cost of a property.
Fact: There are many varied calculations that an appraiser will use to make a detailed analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to certain facilities and the cost of recently sold comparable houses.
Myth: In a strong economy - when the prices of properties in a given county are reported to be increasing by a certain percentage - the prices of individual houses in the proximity can be expected to rise by that same percentage.
Fact: Cost appreciation of a specific house has to be concluded on an individualized basis, factoring in data on comparable properties and other relevant elements. This is true in strong economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Los Angeles, CA?Contact WalshStreet Appraisals
Myth: Just looking at what the house looks like on the outside gives a good idea of its value.
Fact: House value is concluded by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. An external inspection definitely can't provide all of the data needed.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their house, they legally own their appraisal report.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the document. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it meets the needs of their lending company.
Fact: It is almost imperative for home buyers to look at a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a near perfect record for future reference, containing 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a home during a sales transaction involving a lending agency.
Fact: Based upon their qualifications and designations, appraisers can and do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal is no different than a home inspection report.
Fact: A home inspection report serves a completely different purpose than an appraisal report. The task of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the property and its main components and reports their findings.