Appraisal myths & facts
It is enforced by legal agencies that an appraiser must be state-licensed to write appraisal reports for federally-supported property purchases in California. The law allows you to receive a copy of your finished appraisal report from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal procedure.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: It is probable that California, like most states, validates the suggestion that the assessed value is the same as the market value; however, this is not always true. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or other homes in the neighborhood have not been reassessed for a good length of time, it may vary wildly.
Myth: The appraised value of a home will change depending upon if the appraisal is ordered for the buyer or the seller.
Fact: The appraised value of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the home. This means that he will conduct task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the home should be is on par with the market value.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a certain property, with neither being under duress to buy or sell. The dollar amount needed to rebuild a house is what constitutes the replacement cost.
Myth: Specific methods, like the price per square foot of the property, are the ways appraisers use to arrive at the value of a home.
Fact: An appraisal is an amalgamation of information concluded from the home's size, location, proximity to some facilities, the condition of the house and the worth of recent comparable sales. You can depend on WalshStreet Appraisals's staff to be professional in assessing this data.
Myth: When the economy is robust and the sales prices of houses are found to be rising by a certain percentage, the other houses in the neighborhood can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser concludes concerning a particular house is always personalized, based on certain factors found from the information of comparable houses and other considerations within the house itself. It makes no difference if the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in Los Angeles County or Los Angeles, CA?Contact WalshStreet Appraisals
Myth: You can usually tell what a home is worth simply by looking at the exterior.
Fact: To conclude an accurate value beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. As you can see, none of these variables can be derived simply by viewing the property from the exterior.
Myth: Since you're the one providing the money for the appraisal when applying for the loan to buy or refinance real estate, you own the ordered appraisal.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the report. Home buyers have to be given a version of the report through request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their document so long as it exceeds the needs of their lending institution.
Fact: Only if consumers examine a copy of their appraisal 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. Also, the appraisal makes a valuable record for future reference, comprised of useful 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.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a house during a sales transaction involving a lending institution.
Fact: Depending upon their qualifications and designations, appraisers can and often do perform a series of 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: Appraisal reports are definitely not the same as a home inspection report. The purpose of the appraiser is to form an opinion of value in the appraisal process and through creating the report. House inspectors will produce a report that will express the condition of the house and its major components and possible damage.