Appraisal myths & facts
It is enforced by law that an appraiser must be state-licensed to perform appraisal reports for federally-supported property purchases in Wisconsin. Also by law, you have the ability to demand a copy of the finished appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser must be exactly the same as the market value.
Fact: It might be that Wisconsin, like most states, supports the idea that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the Holmen have not been reassessed for quite some time, it may vary wildly.
Myth: The buyer or the seller sometimes may have impact in the value of the home depending upon for whom the appraiser is working.
Fact: The value of the home does not affect the salary of the appraiser; as such, the appraiser has no preconceived interest in the worth of the property. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is produced.
Myth: Market value will approximate replacement cost.
Fact: Market value is found by what a willing buyer would likely pay a willing seller for a specific home, with neither being under undue influence to buy or sell. Replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: There are specific methods that appraisers use to determine the cost of a house, like the price per square foot.
Fact: An appraisal is an assertion of data concluded from the property's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can count on Walz Appraisal Service, LLC's appraisers to be professional in assessing this data.
Myth: As homes appreciate by a certain percentage - in a strong economic state - the properties within the same neighborhood are expected to appreciate by the same amount.
Fact: Any worth at which an appraiser concludes in regards to a specific house is always personalized, based on certain factors found from the information of comparable properties and other considerations within the house itself. It makes no difference whether the economy is strong or terrible.
Have other questions about appraisers, appraising or real estate in La Crosse County or Holmen, WI?Contact us
Myth: The property's exterior is determinate of the actual value of the house; it is unnecessary to do an interior appraisal.
Fact: There are a number of different variables that determine the value of a home; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by looking at the house from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance real estate, you own the produced appraisal.
Fact: Legally, the appraisal report is owned by the lender unless the lender relinquishes their interest in the document. Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be provided with it by their lender.
Myth: Consumers need not care about what is in their document so long as it exceeds the necessities of their lending group.
Fact: It is almost imperative for home buyers to check over a copy of their appraisal report so that they can verify 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. An appraisal report can serve as a record for the future, as it contains an incredible amount of data - including, but certainly 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: Appraisers are hired only to estimate building values in house sales involving mortgage-lending deals.
Fact: Hiring an appraiser can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude 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 report.
Fact: A home inspection report serves a completely different purpose than an appraisal. The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. The point of a home inspector is to assess the condition of the home and its main components, then create a report on these inspection.