Common myths about appraising
It is enforced by law that an appraiser is required to be state-licensed to perform appraisal reports for federally-supported property purchases in Wisconsin. You also have the right to acquire a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.
Myth: Market value will be equivocal to the assessed value of the property.
Fact: While most states uphold the suggestion that assessed value is the same as estimated market value, this often is not the case. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are perfect examples of why this occurs.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the cost of the property will vary.
Fact: There is no personal interest on the part of the appraiser in the result of the appraisal, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is written.
Myth: Any time market value is found, it should be the same as the replacement cost of the home.
Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a specific home, with neither being under undue influence to buy or sell. The dollar amount required to reconstruct a house is what forms the replacement cost.
Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the value of a home.
Fact: There are many differing methods that an appraiser will use to make a comprehensive investigation of every factor pertaining to the home, such as the size, location, condition, how close it is to specific facilities and the value of recently sold comparable homes.
Myth: In a strong economy - when the prices of houses in a given neighborhood are found to be increasing by a particular percentage - the costs of individual properties in the vicinity can be expected to appreciate by that same percentage.
Fact: Any cost at which an appraiser concludes concerning a specific house is always individualized, based on certain factors pulled from the data of comparable homes and other specifications within the home itself. This is true in excellent economic times as well as bad.
Have other questions about appraisers, appraising or real estate in Racine County or Sturtevant, WI?Contact A & B Tax Service
Myth: The home's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Fact: Home worth is concluded by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by examining the property from the exterior.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal.
Fact: Legally, the appraisal is owned by the lending agency unless the lender releases their interest in the document. Consumers have to be supplied with a copy of the document through request as per the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal document so long as it exceeds the necessities of their lending company.
Fact: A home buyer should definitely inspect their report; there may be some questions or some worries about the accuracy of the inspection that need to be addressed. 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, containing an incredible 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 proximity.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the cost of a property during a sales transaction involving a lending company.
Fact: Hiring an appraiser can fulfill a variety of wants depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: A home inspection serves a completely different purpose than an appraisal. The task of the appraiser is to conclude an opinion of value in the appraisal process and through producing the report. A home inspector assesses the condition of the house and its main components and reports these findings.