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The following article was published in our article directory on June 14, 2012.
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Some Misconceptions and Facts Relating to Real Estate Appraisals and also Appraisers

Article Category: Real Estate

Author Name: Matthew George

Myth: Assessed value should correspond with to market value.
Reality: While most states maintain the notion that assessed value approximate estimated market value, this frequently is not the case. Examples include when interior reconstruction has taken place and the assessor is unaware of the enhancements, or when properties in the vicinity have not been reassessed for an long period.

Myth: The appraised value of a property will deviate, depending upon if the appraisal is conducted for the purchaser or the owner.
Reality: The appraiser has no vested interest in the end result of the appraisal and really should render services with independence, objectivity and neutrality - no matter for whom the appraisal is performed.

Myth: Market value should approximate replacement cost.
Reality: Market value is depended on what a willing buyer likely would pay a willing seller for a certain property, with neither being under pressure to buy or sell. Replacement cost is the dollar value required to restore a residence in-kind.

Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the worth of a home.
Reality: Appraisers make an in-depth evaluation of all aspects pertaining to the value of a home including its location, condition, size, proximity to facilities and current sale prices of comparable properties.

Myth: In a robust economy - when the sales prices of homes in a given neighborhood are reported to be rising by a particular percentage - the value of individual residences in the location can be expected to improve by that similar percentage.
Reality: Value appreciation of a specified home must be determined on an individual basis, factoring in data on equivalent properties and various other pertinent considerations. This is true in good times along with bad.

Myth: Because consumers pay for appraisals when applying for mortgages to buy or re-finance real estate, they own their appraisal.
Reality: The appraisal is, really, legally owned by the lender - unless the lender "releases its interest" in the document. Nevertheless, consumers should be provided a copy of the appraisal document, upon written request, under the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the requirements of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the final result. Additionally, it makes a valuable record for future reference, consisting of useful and often-revealing info - including the legal and physical summary of the residence, square footage measurements, list of equivalent homes in the community, neighborhood description and a narrative of present real-estate activity and/or market trends in the vicinity.

Myth: An Appraisal is the same as a property inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an estimation of value in the Appraisal course of action and resulting write up. A home inspector identifies the condition of the property and its main elements and reports these findings.

Keywords: Matthew George Appraiser

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