Common myths about appraising
It is required by the government that a real estate appraiser needs to be state-licensed to create appraisals for federally-supported real estate transactions in Oklahoma. Also by law, you are allowed to request a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Market value will be equivocal to the assessed value of the property.
Fact: It might be that Oklahoma, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not often the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are perfect examples of why the price can vary.
Myth: The appraised value of a house will change depending upon if the appraisal is produced for the buyer or the seller.
Fact: The appraised value of the property does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the value of the property. This means that he will complete his job with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement cost of the house will be is on par with the market value.
Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. If the property were rebuilt, the dollar amount required to do so would be the replacement cost.
Myth: Appraisers use a calculation, such as a specific price per square foot, to figure out the worth of a property.
Fact: There are many numerous ways that an appraiser will use to make a detailed analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the worth of recently sold comparable houses.
Myth: As houses increase their worth by a certain percentage - in a robust economy - the properties within the same neighborhood are figured to increase by the same amount.
Fact: Cost increase of a specific property has to be concluded on an individualized basis, factoring in data on comparable homes and other relevant specifications within the house itself. It makes no difference whether the economy is powerful or bad.
Have other questions about appraisers, appraising or real estate in Comanche County or Lawton, OK?Contact Barnes Appraisal Company
Myth: Just examining what the home looks like on its exterior gives an idea of its value.
Fact: There are a multitude of different variables that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply looking at the home from the outside.
Myth: Since the consumer is the person who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Fact: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the document. Because of the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be given one by their lender.
Myth: Home buyers need not care about what is in their appraisal document so long as it exceeds the needs of their lending institution.
Fact: It is almost imperative for consumers to check over a copy of their appraisal so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect record for future reference, filled with useful and often-revealing information - 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the cost of a home during a sales transaction involving a lender.
Fact: Based upon their qualifications and designations, appraisers can and may perform a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: An appraisal report is the same as a home inspection report.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The task of the appraiser is to form an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the property and its major components and reports their findings.