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Appraisal myths & facts

By law, an appraiser needs to be state-licensed to offer appraisals for federally-supported transactions. The law gives you the right to acquire a copy of your completed appraisal report from your lending agency after it has been produced. Contact Barnes Appraisal Company if you have any questions about the appraisal procedure.

Myth: The value that is ascertained by the appraiser should be the same as the market value.

Fact: It is possible that Oklahoma, like most states, supports the suggestion that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when houses in the vicinity have not been reassessed for an prolonged period.

Myth: The buyer or the seller often will have an influence in the cost of the home depending upon for whom the appraiser is working.

Fact: The cost of the home does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the house. What this means is he will conduct services with impartiality and objectivity regardless for whom the appraisal is created.

Myth: Any time market value is found, it should equal the replacement cost of the home.

Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular property, with neither being under pressure 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, are what appraisers use to determine the cost of a house.

Fact: There are many differing processes that an appraiser will use to make an in-depth analysis of every factor pertaining to the home, such as the size, location, condition, how close it is to undesirable facilities and the value of recently sold comparable properties.

Myth: As homes increase their worth by a specific percentage - in a strong economy - the homes in proximity are expected to appreciate by the same amount.

Fact: All appreciation of price is on a one-on-one basis, determined by data on relevant conditions and the data of comparable houses. This is true in excellent 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: Just examining what the house looks like on the outside gives an idea of its value.

Fact: To determine an accurate value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no real way to get all of this information from just examining the house from the exterior.

Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their house, they legally own their appraisal report.

Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be provided with a version of the report upon written request as per the Equal Credit Opportunity Act.

Myth: Home buyers need not care about what is in their appraisal document so long as it satisfies the requirements of their lending company.

Fact: Only if consumers read a copy of their appraisal can they double-check 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 report makes a near perfect record for future reference, comprised of helpful 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 order an appraisal unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lending company.

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

Myth: You shouldn't need to get an appraisal if you order a home inspection.

Fact: Appraisal reports are nothing like a home inspection. An appraiser decides upon an opinion of value in the appraisal process and resulting report. A home inspector assesses the condition of the property and its major components and reports these findings.