Common myths about appraising
By law, an appraiser needs to be state-licensed to perform appraisals for federally-supported sales. You also have the right to acquire a copy of the finished report from your lender. Contact Appraise Colorado Inc if you have any questions about the appraisal procedure.
Myth: The value that is assessed by the appraiser is required to be the same as the market value.
Fact: It is possible that Colorado, like most states, validates the idea that the assessed value is no different from the market value; however, this is not often the case. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby homes are excellent examples of why there might be a differential in price.
Myth: The buyer or the seller often will have leverage in the value of the property depending upon for whom the appraiser is working.
Fact: The opinion of value of the home does not affect the salary of the appraiser; due to this, the appraiser has no pressured interest in the cost of the property. Obviously, he will conduct task with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement value of the home should be is on par with the market value.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a certain house, with neither being under pressure to buy or sell. If the property were reconstructed, the dollar amount needed to do so would set the replacement cost.
Myth: Specific formulae, like the price per square foot of the property, are the methods appraisers use to come to the worth of a home.
Fact: There are many differing ways that an appraiser will use to make a full investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to undesirable facilities and the sales price of recently sold comparable houses.
Myth: When the economy is doing well and the worth of homes are reported to be appreciating by a certain percentage, the other properties in the vicinity can be expected to increase based on that same percentage.
Fact: Any worth at which an appraiser concludes concerning a certain property is always individualized, based on certain factors pulled from the data of comparable houses and other specifications within the house itself. It makes no difference if the economy is strong or bad.
Have other questions about appraisers, appraising or real estate in Arapahoe County or Parker, CO?Contact Appraise Colorado Inc
Myth: The house's exterior is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Fact: Property worth is determined by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just inspecting the house from the outside.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your home, you own the provided appraisal.
Fact: The report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the report. Home buyers must be provided with a copy of the appraisal report through request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their document so long as it satisfies the necessities of their lending institution.
Fact: It is a very good idea for home buyers to look at a copy of their appraisal report so that they can verify the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable record for future reference, containing helpful 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 vicinity.
Myth: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can provide a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal report is no different than a home inspection.
Fact: An appraisal does not serve the same purpose as an inspection report. An appraiser decides upon an opinion of value in the appraisal process and resulting report. A home inspector determines the condition of the building and its main components and reports these findings.