Common myths about appraising
By law, an appraiser is enforced to be state-licensed to produce appraisals for federally-supported purchases. You have the ability to request a copy of the finished report from your lender. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value should be similar to to market value.
Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby homes are excellent examples of why the price can vary.
Myth: The buyer or the seller often will have leverage in the value of the home depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is created.
Myth: The replacement value of the house will be is on par with the market value.
Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount needed to reconstruct a property in-kind.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a home, such as the price per square foot.
Fact: An appraisal is a collection of information concluded from the house's size, location, proximity to specific facilities, the condition of the property and the cost of recent comparable sales. You can depend on Walz Appraisal Service, LLC's appraisers to be professional in assessing this information.
Myth: In a robust economy - when the sales prices of properties in a given county are found to be appreciating by a particular percentage - the values of individual houses in the proximity can be expected to increase by that same percentage.
Fact: All appreciation of worth is on an individual basis, found by information on relevant elements and the data of comparable houses. It makes no difference whether the economy is powerful or terrible.
Have other questions about appraisers, appraising or real estate in La Crosse County or Holmen, WI?Contact us
Myth: Just examining what the house looks like on the outside gives an idea of its cost.
Fact: There are a number of different factors that show the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply inspecting the home from the exterior.
Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their home, they own their appraisal report.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. However, home buyers have to be given a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their document so long as it meets the needs of their lending agency.
Fact: Only if home buyers read a copy of their appraisal report can they verify its accuracy and possibly need to question the result. 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 useful and often-revealing information - including 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: There is no reason to hire an appraiser unless you are trying to get an estimate of the price of a property during a sales transaction involving a lending agency.
Fact: Appraisers can have many varied qualifications and designations which allow them to perform a multitude of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection. The point of an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the completion of the report. The task of a home inspector is to assess the condition of the house and its major components, then compose a report on their findings.