Appraisal myths & facts
Legally, an appraiser is required to be state certified to create substantiated real estate appraisals for federally-supported transactions. Also by law, you have the ability to receive a copy of the finished appraisal from your lending agency. Contact our professional staff if you have any concerns about the appraisal process.
Myth: Assessed value should always be similar to to market value.
Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. There are times when interior remodeling has been done and the assessor is has not investigated the improvement or other homes in the Parker have not been reassessed for quite some time, it may vary wildly.
Myth: Depending on if the appraisal is written for the buyer or the seller, the opinion of value of the home will vary.
Fact: The appraiser has no vested interest in the result of the appraisal and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: Market value will equal replacement cost.
Fact: Without any suggestion from any external parties to buy or sell, market value is what a willing buyer would pay a willing seller for a specific house. The dollar amount needed to rebuild a property is what shows the replacement cost.
Myth: There are specific methods that appraisers use to find the opinion of value of a home, like the price per square foot.
Fact: An appraisal report is an assertion of information concluded from the property's size, location, proximity to undesirable facilities, the condition of the property and the worth of recent comparable sales. You can rely on Appraise Colorado Inc's staff to be professional in assessing this information.
Myth: When the economy is on the rise and the sales prices of homes are reported to be appreciating by a certain percentage, the other properties in the vicinity can be expected to appreciate based on that same percentage.
Fact: Any price at which an appraiser arrives in regards to a particular house is always personalized, based on certain factors pulled from the data of comparable properties and other considerations within the house itself. This is true in fair economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Douglas County or Parker, CO?Contact our professional staff
Myth: You can commonly find what a property is worth simply by looking at the exterior.
Fact: There are a number of different variables that determine the value of a home; these factors include location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by inspecting the home from the exterior.
Myth: Because consumers fund the appraisal when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the report. However, home buyers have to be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it satisfies the requirements of their lending agency.
Fact: It is very important for consumers to go through a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an report that could be useful to the consumer in the future, such as 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: The only reason someone would order an appraisal is if a property needs its price assessed in a lender-based sales transaction.
Fact: Depending upon their qualifications and designations, appraisers can and may perform a multitude of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you order a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. The task of the appraiser is to form an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will determine the condition of the property and its major components and possible damage.