Common myths about appraising

Legally, a real estate appraiser is required to be state certified to create substantiated real estate appraisals for federally-supported transactions. Also by law, you have the ability to demand a copy of the finished appraisal from your lender. Contact A. M. Appraisals if you have any concerns about the appraisal process.

Myth: Assessed value should always be equal to market value.

Fact: It might be that South Carolina, like most states, supports the suggestion that the assessed value is no different from the market value; however, this is not often the case. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby houses are exact examples of why there might be a differential in price.

Myth: The value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.

Fact: The cost of the home does not affect the payment of the appraiser; due to this, the appraiser has no pressured interest in the opinion of value of the house. Obviously, he will conduct business with impartiality and independence regardless for whom the appraisal is created.

Myth: Any time market value is found, it should equate to the replacement cost of the house.

Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a specific home, with neither being under pressure to buy or sell. If the house were reconstructed, the dollar amount necessary to do so would set the replacement cost.

Myth: There are specific methods that appraisers use to find the opinion of value of a property, such as the price per square foot.

Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can count on A. M. Appraisals's appraisers to be forthright in assessing this data.

Myth: As houses increase their worth by a specific percentage - in a strong economy - the properties in proximity are figured to increase by the same amount.

Fact: Any cost at which an appraiser arrives concerning a particular property is always personalized, based on certain factors pulled from the information of comparable homes and other considerations within the home itself. It makes no difference if the economy is good or poor.

Myth: You can generally find what a home is worth simply by looking at the exterior.

Fact: House value is determined by a number of factors, including area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by examining the property from the outside.

Myth: Since you're the one funding for the appraisal when applying for the loan to purchase or refinance your house, you own the produced appraisal.

Fact: Unless a lender releases its interest in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Under the Equal Credit Opportunity Act, any home buyer demanding a copy of the appraisal report must be given one by their lending agency.

Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the necessities of their lender.

Fact: It is very important for home buyers to check over a copy of their appraisal report so that they can double-check the accuracy of the report, in case it's required 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, containing a great deal 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.