Common myths about appraising
It is mandated by legal agencies that a real estate appraiser must be state-licensed to offer appraisal reports for federally-related home transactions in North Carolina. The law allows you to receive a copy of your finished appraisal from your lending agency after it has been provided. Contact us if you have any concerns about the appraisal process.
Myth: Market value should be equivocal to the assessed value of the property.
Fact: While most states back the idea that assessed value is the same as estimated market value, this usually is not the case. Generally when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The value of a house will differ depending upon whether the appraisal is provided for the buyer or the seller.
Fact: The opinion of value of the home does not affect the payment of the appraiser; as such, the appraiser has no preconceived interest in the value of the house. Obviously, he will render task with impartiality and objectivity regardless for whom the appraisal is created.
Myth: Any time market value is established, it should be similar to the replacement cost of the house.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific home, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific ways that real estate appraisers use to determine the cost of a house, like the price per square foot.
Fact: An appraisal is an assertion of information concluded from the property's size, location, proximity to specific facilities, the condition of the house and the worth of recent comparable sales. You can rely on James Earp Appraisal Service's appraisers to be forthright in assessing this data.
Myth: As houses appreciate by a certain percentage - in a strong economy - the houses nearby are expected to appreciate by the same amount.
Fact: Value appreciation of a certain property has to be concluded on a case-by-case basis, factoring in information on comparable properties and other relevant considerations. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Wake County or Raleigh, NC?Contact us
Myth: The house's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior inspection.
Fact: There are a number of different variables that conclude property value; these factors include location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found just by examining the home from the exterior.
Myth: Because consumers fund appraisals when applying for loans to buy or refinance real estate, they own their appraisal.
Fact: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the document. However, consumers have to be provided with a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even worry about what the appraisal contains so long as their lending agency is satisfied.
Fact: It is very important for consumers to check over a copy of their appraisal so that they can verify the accuracy of the document, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data stored 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 region.
Myth: The only reason someone would hire an appraiser is if a property needs its price assessed in a lender sales transaction.
Fact: Based upon their qualifications and designations, appraisers can and will provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are definitely not the same as a home inspection. The job of the appraiser is to come to an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to approximate the condition of the house and its major components, then produce a report on these inspection.