Appraisal myths & facts

Legally, a real estate appraiser must be state certified to perform legitimate appraisal reports for federally-backed transactions. You have the ability to receive a copy of the completed appraisal from your lender. Contact Corrie Appraisal & Consulting, Inc. if you have any concerns about the appraisal procedure.

Myth: Assessed value should be equal to market value.

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. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when homes in the vicinity have not been reassessed for an prolonged period of time.

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the cost of the home will vary.

Fact: The appraiser has no personal interest in the outcome of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

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

Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell. Replacement value is the dollar amount required to rebuild a property in-kind.

Myth: There are specific methods that appraisers use to determine the value of a property, such as the price per square foot.

Fact: An appraisal is a collection of information based on the property's size, location, proximity to specific facilities, the condition of the property and the worth of recent comparable sales. You can rely on Corrie Appraisal & Consulting, Inc.'s staff to be honest in assessing this data.

Myth: When the economy is on the rise and the worth of properties are found to be increasing by a certain percentage, the other homes in the proximity can be expected to increase based on that same percentage.

Fact: All appreciation of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable properties. This is true in excellent economic times as well as bad.

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

Fact: House worth is determined by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply examining the house from the outside.

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

Fact: Legally, the appraisal report is owned by the lending company unless the lender relinquishes their interest in the appraisal. Home buyers must be given a copy of the appraisal report upon written request because of the Equal Credit Opportunity Act.

Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the necessities of their lending agency.

Fact: It is a very good idea for home buyers to go through a copy of their report so that they can double-check the accuracy of the report, in case they need to question its accuracy. 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, containing useful and often-revealing information - including 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.