Appraisal myths debunked
Legally, an appraiser is required to be state certified to create legitimate appraisal reports for federally-supported purchase. You have the ability to request a copy of the finished appraisal from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: The value that is ascertained by the appraiser is required to be the same as the market value.
Fact: It is possible that Wisconsin, like most states, validates the idea that the assessed value equates to the market value; however, this is not often the case. Examples include when interior remodeling 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 buyer or the seller can have an influence in the cost of the house depending upon for whom the appraiser is working.
Fact: There is no real interest on the part of the appraiser in the result of the report, therefore he will conduct his work with impartiality and independence, despite for whom the appraisal is written.
Myth: Any time market value is found, it should equate to the replacement cost of the home.
Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular property. If the property were rebuilt, the dollar amount required to do so would be the replacement cost.
Myth: Certain methods, such as the price per square foot, are what appraisers use to come to the cost of a home.
Fact: An appraisal is an assertion of information concluded from the house's size, location, proximity to certain facilities, the condition of the house and the price of recent comparable sales. You can count on A & B Tax Service's staff to be honest in assessing this information.
Myth: In a strong economy - when the prices of houses in a given neighborhood are found to be rising by a particular percentage - the worth of individual houses in the vicinity can be expected to increase by that same percentage.
Fact: Worth appreciation of a specific property is always determined on a case-by-case basis, factoring in data on comparable houses and other relevant considerations. This is true in excellent economic times as well as poor.
Have other questions about appraisers, appraising or real estate in Racine County or Sturtevant, WI?Contact us
Myth: Just looking at what the house looks like on the outside gives a good idea of its cost.
Fact: There are a multitude of different factors that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these things can be found just by viewing the property from the outside.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to purchase or refinance your house, you own the produced appraisal.
Fact: Legally, the document is owned by the lending company unless the lender relinquishes their interest in the report. By the Equal Credit Opportunity Act, any consumer demanding a copy of the appraisal report must be provided with it by their lending agency.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it meets the necessities of their lending agency.
Fact: Only if home buyers read a copy of their 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 serve as a record for the future, as it contains an exorbitant amount of information - 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the cost of a property during a sales transaction involving a lending company.
Fact: Based upon their qualifications and designations, appraisers can and do perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting report. The task of a home inspector is to approximate the condition of the property and its major components, then compose a report on their findings.