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Common myths about appraising

Legally, an appraiser has to be state certified to perform substantiated real estate appraisals for federally-backed sales. You have the ability to demand a copy of the completed appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.

Myth: Assessed value generally will be the same as to market value.

Fact: While most states back the concept that assessed value equates estimated market value, this commonly is not the case. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when homes in the vicinity have not been reassessed for an prolonged period.

Myth: The buyer or the seller often will have leverage in the value of the house depending upon for whom the appraiser is working.

Fact: The opinion of value of the property does not affect the salary of the appraiser; as a result, the appraiser has no vested interest in the opinion of value of the home. Obviously, he will provide business with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: Market value will equate to replacement cost.

Fact: Without any suggestion from any different parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. If the house were rebuilt, the dollar amount required to do so would set the replacement cost.

Myth: Specific methods, like the price per square foot of the property, are the methods appraisers use to determine the price of a home.

Fact: An appraisal is an assertion of data based on the house's size, location, proximity to specific facilities, the condition of the house and the value of recent comparable sales. You can rely on Barnes Appraisal Company's staff to be honest in assessing this data.

Myth: In a robust economy - when the prices of homes in a given county are reported to be appreciating by a certain percentage - the costs of individual homes in the vicinity can be expected to increase by that same percentage.

Fact: Worth increase of a specific home must be concluded on a case-by-case basis, factoring in data on comparable properties and other relevant elements. This is true in strong economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?

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

Fact: To conclude an accurate value beyond all doubt, an appraiser must inspect the property on a variety of factors based on area, condition, improvements, amenities, and current market trends. As you can see, none of these factors can be found just by looking at the home from the outside.

Myth: Since the consumer is the person who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal is theirs.

Fact: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be provided with one by their lender.

Myth: Home buyers need not worry about what is in their appraisal so long as it exceeds the requirements of their lending group.

Fact: A home buyer should definitely inspect their document; there will probably 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 appraisal report makes a near perfect record for future reference, containing useful and often-revealing data - 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 area.

Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the price of a property during a sales transaction involving a lending company.

Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: An appraisal report is no different than a home inspection.

Fact: A home inspection has a completely different purpose than an appraisal. The task of the appraiser is to form an opinion of value in the appraisal process and through writing the report. House inspectors will write a report that will express the condition of the property and its major components and possible damage.