Appraisal myths debunked

Legally, an appraiser needs to be state certified to create legitimate appraisal reports for federally-related transactions. You also have the right to demand a copy of the completed report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: The value that is assessed by the appraiser will be the same as the market value.

Fact: While most states back the idea that assessed value is equal to estimated market value, this usually is not the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for quite some time, it may vary wildly.

Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the property will vary.

Fact: The appraised value of the house does not affect the salary of the appraiser; as a result, the appraiser has no personal interest in the opinion of value of the house. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is produced.

Myth: Market value should approximate replacement cost.

Fact: Without any influence from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular home. The dollar amount demanded to reconstruct a property is what constitutes the replacement cost.

Myth: There are certain methods that real estate appraisers use to determine the cost of a home, such as the price per square foot.

Fact: An appraisal is an assertion of information based on the property's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can depend on Appraisal Advisors Group's staff to be honest in assessing this information.

Myth: As properties increase their worth by a certain percentage - in a robust economic state - the properties in proximity are expected to appreciate by the same amount.

Fact: Any cost at which an appraiser arrives concerning a specific property is always personalized, based on certain factors derived from the data of comparable houses and other considerations within the home itself. It makes no difference if the economy is good or poor.

Have other questions about appraisers, appraising or real estate in Caguas County or Caguas, PR?

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Myth: Just examining what the property looks like on its exterior gives an idea of its worth.

Fact: Property value is determined by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the information necessary.

Myth: Since you're the one providing the money for the appraisal report when applying for the loan to purchase or refinance your house, you own the provided appraisal report.

Fact: Legally, the appraisal report is owned by the lending agency unless the lender relinquishes their interest in the report. However, consumers have to be given a copy of the document upon written request, through the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their appraisal document so long as it satisfies the necessities of their lending agency.

Fact: Only if consumers examine a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve as a record for the future, as it contains an exorbitant 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 proximity.

Myth: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.

Fact: Appraisers can have many different qualifications and designations which allow them to perform a variety of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

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

Fact: Appraisal reports are completely different than a home inspection. The task of the appraiser is to find an opinion of value in the appraisal process and through producing the report. A home inspector analyzes the condition of the property and its main components and reports their findings.