Appraisal myths debunked
By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-related transactions. You also have the right to request a copy of the completed appraisal report from your lending agency. Contact Las Vegas Appraisal Service, Inc. if you have any questions about the appraisal procedure.
Myth: Market value will be equivocal to the assessed value of the property.
Fact: It might be that Nevada, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not always true. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an prolonged period of time.
Myth: The value of a home will be different depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The value of the home does not affect the pay of the appraiser; as such, the appraiser has no preconceived interest in the worth of the home. What this means is he will complete his task with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: The replacement cost of the house should be is on par with the market value.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. The dollar amount necessary to reconstruct a home is what constitutes the replacement cost.
Myth: There are certain methods that real estate appraisers use to find the cost of a home, such as the price per square foot.
Fact: Appraisers complete a full analysis of all factors in consideration to the price of a home, including its location, condition, size, proximity to facilities and recent worth of comparable houses.
Myth: In a powerful economy - when the sales prices of homes in a given region are reported to be appreciating by a particular percentage - the values of individual houses in the vicinity can be expected to appreciate by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, determined by data on relevant conditions and the data of comparable houses. This is true in excellent economic times as well as poor.
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Myth: You can often see what a house is worth simply by looking at the exterior.
Fact: There are a multitude of different variables that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the data necessary.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance real estate, they own their appraisal.
Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. However, consumers have to be provided with a copy of the appraisal upon written request, through the Equal Credit Opportunity Act.
Myth: Home buyers need not be concerned with what is in their appraisal so long as it meets the requirements of their lending agency.
Fact: A consumer should definitely read through their document; there could be some questions or some concerns about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an report that could be useful to the consumer in the future, such as 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 home needs its price estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of requirements 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: An appraisal report does not serve the same purpose as an inspection. An appraiser decides upon an opinion of value in the appraisal process and resulting appraisal. A home inspector assesses the condition of the home and its main components and reports these findings.