Appraisal myths debunked
It is enforced by the government that a real estate appraiser is required to be state-licensed to offer appraisals for federally-related property sales in Wisconsin. Also by law, you are entitled to demand a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal process.
Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Fact: While most states support the idea that assessed value equates estimated market value, this often is not the case. Interior reconstruction that the assessor is unaware of and a dearth of reassessment on nearby homes are exact examples of why this occurs.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the appraised value of the house will vary.
Fact: The appraised value of the house does not affect the pay of the appraiser; as such, the appraiser has no vested interest in the cost of the house. What this means is he will conduct business with impartiality and independence regardless for whom the appraisal is created.
Myth: The replacement value of the home is always is on par with the market value.
Fact: Without any pressure from any external parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. If the home were rebuilt, the dollar amount necessary to do so would set the replacement cost.
Myth: There are certain methods that appraisers use to show the value of a house, like the price per square foot.
Fact: An appraisal is an assertion of data based on the home's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can rely on A & B Tax Service's staff to be professional in assessing this information.
Myth: When the economy is on the rise and the cost of homes are reported to be increasing by a certain percentage, the other houses in the vicinity can be expected to rise based on that same percentage.
Fact: Any value at which an appraiser arrives in regards to a certain house is always personalized, based on certain factors derived from the information of comparable houses and other considerations within the home itself. It makes no difference if the economy is strong or poor.
Have other questions about appraisers, appraising or real estate in Racine County or Sturtevant, WI?Contact our professional staff
Myth: Just examining what the home looks like on the outside gives a good idea of its value.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no possible way to get all of this information from just viewing the property from the exterior.
Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance your house, you own the provided appraisal report.
Fact: Legally, the document is owned by the lending company unless the lender releases their interest in the report. Home buyers must be provided with a version of the appraisal report through request as per the Equal Credit Opportunity Act.
Myth: Home buyers need not care about what is in their report so long as it exceeds the requirements of their lending group.
Fact: Only if home buyers read a copy of their appraisal report can they double-check 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 report can serve as a record for the future, as it contains a great deal of data - 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 proximity.
Myth: The only reason someone would hire an appraiser is if a home needs its worth estimated in a lender-based sales transaction.
Fact: Ordering an appraisal can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you get a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal report. The appraiser forms an opinion of value in the appraisal process and resulting appraisal report. House inspectors will create a report that will show the condition of the property and its major components and possible damage.