Appraisal myths debunked
It is enforced by legal agencies that a real estate appraiser must be state-licensed to create appraisals for federally-related property sales in Oklahoma. The law allows you 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 process.
Myth: Assessed value will always be the same as to market value.
Fact: It might be that Oklahoma, like most states, supports the common myth that the assessed value equals the market value; however, this is not always true. At times when interior remodeling has been done and the assessor is not aware of the improvement or other homes in the Lawton have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller often will have impact in the cost of the house depending upon for whom the appraiser is working.
Fact: The value of the house does not affect the salary of the appraiser; as such, the appraiser has no preconceived interest in the opinion of value of the house. Obviously, he will provide task with impartiality and independence regardless for whom the appraisal is created.
Myth: Market value will approximate replacement cost.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific property. The replacement cost is the dollar amount needed to reconstruct a home in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the ways appraisers use to come to the worth of a home.
Fact: There are many numerous ways that an appraiser will use to make a detailed investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the sales price of recently sold comparable properties.
Myth: When the economy is strong and the worth of properties are reported to be appreciating by a certain percentage, the other houses in the area can be expected to increase based on that same percentage.
Fact: All increase of value is on a case-by-case basis, found by information on relevant considerations and the data of comparable properties. It makes no difference whether the economy is excellent or bad.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact Barnes Appraisal Company
Myth: The property's exterior is determinate of the actual price of the house; it is unnecessary to do an interior inspection.
Fact: There are a number of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just looking at the home from the exterior.
Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance real estate, you own the provided appraisal.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. However, consumers have to be given a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no need for consumers to even concern themselves with what the appraisal report contains so long as their lending institution is fine with the contents therein.
Fact: A consumer should definitely inspect their appraisal report; there may be some questions or some concerns with the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing an incredible amount of 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 vicinity.
Myth: Appraisers are hired only to assess house values in property sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Fact: Appraisal reports are completely different than a home inspection. The purpose of an appraisal report is to conclude upon an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will compose a report that will show the condition of the property and its major components and possible damage.