Appraisal myths & facts
It is required by the government that an appraiser must be state-licensed to offer appraisal reports for federally-supported home transactions in Texas. The law allows you to acquire a copy of your finished appraisal from your lending agency after it has been produced. Contact us if you have any questions about the appraisal procedure.
Myth: Assessed value should always equate to market value.
Fact: It is possible that Texas, like most states, supports the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Usually when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: The opinion of value of a home will be different depending upon if the appraisal is conducted for the buyer or the seller.
Fact: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: The replacement value of the home 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 property without being under pressure from any outside group to purchase or sell. The dollar amount needed to reconstruct a home is what forms the replacement cost.
Myth: Specific methods, like the price per square foot, are the methods appraisers use to come to the cost of a home.
Fact: There are many different calculations that an appraiser will use to make a full analysis of every factor in consideration of the house, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable houses.
Myth: When the economy is robust and the value of properties are reported to be appreciating by a certain percentage, the other homes in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Any price at which an appraiser arrives in regards to a specific home is always personalized, based on certain factors found from the data of comparable properties and other considerations within the property itself. It makes no difference whether the economy is excellent or poor.
Have other questions about appraisers, appraising or real estate in Randall County or Amarillo, TX?Contact us
Myth: The home's outside is determinate of the actual value of the house; there is no need to do an interior appraisal.
Fact: House value is concluded by a number of factors, including area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by inspecting the property from the exterior.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their house, they legally own their appraisal.
Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending company that ordered the appraisal. Consumers must be supplied with a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their report so long as it exceeds the necessities of their lending agency.
Fact: Only if home buyers check out a copy of their appraisal report can they ensure 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 appraisal can double as a record for the future, containing an exorbitant amount of 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: Appraisals are ordered only to estimate building values in property sales involving mortgage-lending transactions.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you get a home inspection.
Fact: Appraisal reports are definitely not the same as a home inspection report. An appraiser forms an opinion of value in the appraisal process and resulting appraisal report. A home inspector analyzes the condition of the house and its main components and reports these findings.