Appraisal myths debunked
It is mandated by law that a real estate appraiser is required to be state-licensed to offer appraisals for federally-supported property sales in Utah. The law entitles you to receive a copy of your finished report from your lending agency after it has been provided. Contact Appraising UTAH LLC if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser will be exactly the same as the market value.
Fact: While most states uphold the concept that assessed value is equal to estimated market value, this generally is not the case. Examples include when interior reconstruction has occurred and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an prolonged period.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the house will vary.
Fact: The cost of the home does not affect the salary of the appraiser; because of this, the appraiser has no preconceived interest in the opinion of value of the house. This means that he will render business with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Market value will be the same as replacement cost.
Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular home. The dollar amount required to reconstruct a house is what shows the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a home, like the price per square foot.
Fact: There are many varied methods that an appraiser will use to make a full investigation of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the cost of recently sold comparable homes.
Myth: When the economy is strong and the worth of homes are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.
Fact: Any value at which an appraiser arrives concerning a certain house is always individualized, based on certain factors concluded from the data of comparable homes and other considerations within the property itself. It makes no difference if the economy is excellent or poor.
Have other questions about appraisers, appraising or real estate in Iron County or Cedar City, UT?Contact Appraising UTAH LLC
Myth: The house's exterior is determinate of the actual price of the property; there is no need to do an interior appraisal.
Fact: Property value is determined by a number of variables, including area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the information needed.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance your house, you own the provided appraisal report.
Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the report must be given it by their lending company.
Myth: There's no point for home buyers to even concern themselves with what the report contains so long as their lending agency is satisfied.
Fact: A consumer should definitely inspect their report; there may be some questions or some concerns with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, since 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: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of necessities 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 is the same as a home inspection report.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The job of the appraiser is to find an opinion of value in the appraisal process and through producing the report. House inspectors will compose a report that will determine the condition of the property and its major components and possible damage.