Common myths about appraisingBy law, an appraiser must be state-licensed to produce appraisals for federally-supported sales. You are also entitled by law to acquire a copy of the completed report from your lender. Contact Wulf Appraisal Corp. if you have any concerns about the appraisal process. Myth: Market value will be equivocal to the assessed value of the property.Fact: It is probable that California, like most states, supports the idea that the assessed value equals the market value; however, this is not always true. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are prime examples of why this occurs. Myth: The appraised value of a home will differ depending upon if the appraisal is ordered for the buyer or the seller.Fact: The appraiser has no vested interest in the outcome of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is written. Myth: Market value will approximate replacement cost.Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell. If the property were reconstructed, the dollar amount required to do so would make up the replacement cost. Myth: There are certain methods that appraisers use to find the cost of a house, like the price per square foot.Fact: An appraisal is an assertion of data concluded from the property's size, location, proximity to some facilities, the condition of the home and the value of recent comparable sales. You can count on Wulf Appraisal Corp.'s appraisers to be professional in assessing this data. Myth: In a powerful economy - when the worth of homes in a given area are found to be appreciating by a particular percentage - the worth of individual properties in the vicinity can be expected to increase by that same percentage.Fact: Any price at which an appraiser arrives in regards to a particular home is always individualized, based on certain factors pulled from the information of comparable homes and other considerations within the house itself. It makes no difference if the economy is robust or terrible. Have other questions about appraisers, appraising or real estate in Fresno County or Clovis, CA? Contact usMyth: Just looking at what the property looks like on the outside gives an idea of its value.Fact: To conclude an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and current market trends. As you can see, none of these variables can be derived simply by inspecting the home from the exterior. Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance their home, they legally own their appraisal.Fact: Legally, the report is owned by the lending agency unless the lender releases their interest in the report. Home buyers have to be given a version of the document through request because of the Equal Credit Opportunity Act. Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the requirements of their lending company.Fact: A consumer should definitely read through their document; there might be some questions or some worries with the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, containing helpful and often-revealing 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 vicinity. Myth: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender-based sales transaction.Fact: Appraisers can have many different qualifications and designations which allow them to provide a series of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis. Myth: A home inspection serves the same purpose as an appraisal.Fact: An appraisal does not fulfill the same purpose as an inspection report. The job of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report. The purpose of a home inspector is to determine the condition of the property and its major components, then produce a report on their conclusions. |
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