Appraisal myths & facts

It is mandated by law that an appraiser needs to be state-licensed to create appraisal reports for federally-related property sales in . You have the ability to receive a copy of the completed report from your lending agency. Contact Cedar Creek Appraisal if you have any questions about the appraisal procedure.

Myth: The value that is assessed by the appraiser will be exactly the same as the market value.

Fact: While most states back the concept that assessed value is equal to estimated market value, this usually is not the case. Usually when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the area have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the house will vary.

Fact: The appraiser has no personal interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: Any time market value is found, it should be similar to the replacement cost of the home.

Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a home without being under duress from any external group to purchase or sell. If the house were rebuilt, the dollar amount necessary to do so would be the replacement cost.

Myth: Appraisers use a calculation, such as a specific price per square foot, to arrive at the worth of a home.

Fact: An appraisal is an assertion of information based on the house's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can depend on Cedar Creek Appraisal's appraisers to be ethical in assessing this information.

Myth: As houses appreciate by a specific percentage - in a robust economic state - the houses nearby are expected to appreciate by the same amount.

Fact: Worth appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable houses and other relevant specifications within the home itself. It doesn't matter if the economy is on the rise or declining.

Myth: The house's exterior is determinate of the actual worth of the property; it is unnecessary to do an interior appraisal.

Fact: Home value is determined by a number of variables, including location, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the information necessary.

Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their home, they legally own their appraisal report.

Fact: Unless a lending agency releases its vestment in the report, it is legally owned by the lending company that ordered the appraisal. Home buyers have to be given a copy of the appraisal report through request as per the Equal Credit Opportunity Act.

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

Fact: A home buyer should definitely read through their appraisal report; there could be some questions or some concerns with the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data contained in an appraisal that should be useful to the consumer in the future, such as 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.