Appraisal myths & facts

Legally, an appraiser needs to be state certified to produce substantiated real estate appraisals for federally-supported transactions. You are also entitled by law to receive a copy of the completed report from your lending agency. Contact Appraise Colorado Inc if you have any questions about the appraisal procedure.

Myth: Assessed value should be equal to market value.

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. At times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Parker have not been reassessed for quite some time, it may vary wildly.

Myth: The appraised value of a home will vary depending upon if the appraisal is produced for the buyer or the seller.

Fact: The appraiser has no personal interest in the outcome of the appraisal report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: The replacement cost of the house should be is on par with the market value.

Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a home without being under influence from any outside group to purchase or sell. Replacement value is the dollar amount required to rebuild a property in-kind.

Myth: There are specific methods that real estate appraisers use to determine the cost of a house, like the price per square foot.

Fact: An appraisal is an assertion of data based on the home's size, location, proximity to undesirable facilities, the condition of the house and the worth of recent comparable sales. You can count on Appraise Colorado Inc's staff to be honest in assessing this data.

Myth: In a powerful economy - when the costs of houses in a given county are found to be appreciating by a certain percentage - the worth of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: Any price at which an appraiser arrives concerning a certain house is always personalized, based on certain factors concluded from the information of comparable properties and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.

Have other questions about appraisers, appraising or real estate in Arapahoe County or Parker, CO?

Contact Appraise Colorado Inc

Myth: You can generally see what a property is worth simply by looking at the outside.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection definitely can't provide all of the data necessary.

Myth: Considering that the consumer is the person who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report is theirs.

Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the document. However, home buyers must be given a copy of the document upon written request, through the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal so long as it meets the necessities of their lending company.

Fact: It is very important for consumers to check over a copy of their appraisal so that they can double-check the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information stored in an appraisal 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 region.

Myth: Appraisals are ordered only to assess house values in home sales involving mortgage-lending deals.

Fact: Based upon their qualifications and designations, appraisers can and may provide a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: There's no reason to get an appraisal if you get a home inspection.

Fact: A home inspection has a completely different purpose than an appraisal. The function of an appraisal is to find an opinion of fair market value during the appraisal process and the completion of the appraisal report. A home inspector assesses the condition of the building and its major components and reports their findings.