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Common myths about appraising

Legally, a real estate appraiser has to be state certified to create substantiated real estate appraisals for federally-related transactions. You have the ability to demand a copy of the completed report from your lender. Contact our professional staff if you have any questions about the appraisal process.

Myth: Market value will always be similar to the assessed value of the property.

Fact: This usually isn't true; most states do support the idea that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the Chandler have not been reassessed for quite some time, it may vary wildly.

Myth: The opinion of value of a house will vary depending upon whether the appraisal is produced for the buyer or the seller.

Fact: The cost of the property does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the property. What this means is he will provide business with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: The replacement cost of the home should be is on par with the market value.

Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. The replacement cost is the dollar amount required to rebuild a house in-kind.

Myth: Appraisers use a formula, like a certain price per square foot, to arrive at the value of a home.

Fact: There are many varied formulae that an appraiser will use to make a comprehensive analysis of every factor pertaining to the property, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable houses.

Myth: As houses appreciate by a certain percentage - in a robust economy - the houses in proximity are figured to increase by the same amount.

Fact: All increase of worth is on an individual basis, concluded by data on relevant elements and the data of comparable homes. It makes no difference if the economy is strong or on the decline.

Have other questions about appraisers, appraising or real estate in Maricopa County or Chandler, AZ?

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Myth: You can often see what a house is worth simply by looking at the outside.

Fact: There are a number of different factors that determine property value; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from just viewing the house from the exterior.

Myth: Since the consumer is the party who puts up the money to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.

Fact: Legally, the document is owned by the lending agency unless the lender relinquishes their interest in the report. However, consumers must be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the report so long as it meets the requirements of their lender.

Fact: A consumer should definitely inspect their appraisal report; there could be some questions or some worries with the accuracy of the analysis that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an excellent record for future reference, filled with helpful and often-revealing data - including 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: Appraisers are hired only to assess real estate property values in house sales involving mortgage-lending transactions.

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 has a completely different purpose than an appraisal. An appraiser forms an opinion of value in the appraisal process and resulting document. House inspectors will produce a report that will express the condition of the property and its major components and possible damage.