Appraisal myths & facts
By law, an appraiser is required to be state-licensed to perform appraisals for federally-backed purchases. The law entitles you to acquire a copy of your completed appraisal report from your lending agency after it has been produced. Contact our professional staff if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will be equal to market value.
Fact: It is possible that South Carolina, like most states, supports the common myth that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when homes in the vicinity have not been reassessed for an prolonged period of time.
Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the house will vary.
Fact: The appraised value of the property does not affect the salary of the appraiser; as such, the appraiser has no pressured interest in the cost of the home. What this means is he will complete his task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the house will be is on par with the market value.
Fact: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular property. Replacement value is the dollar amount necessary to reconstruct a house in-kind.
Myth: There are certain ways that appraisers use to determine the opinion of value of a property, such as the price per square foot.
Fact: Appraisers make a detailed analysis of all factors pertaining to the cost of a home, including its location, condition, size, proximity to facilities and recent worth of comparable homes.
Myth: As homes increase their worth by a certain percentage - in a robust economic state - the homes nearby are expected to increase by the same amount.
Fact: Price appreciation of a specific home must be determined on a case-by-case basis, factoring in data on comparable homes and other relevant considerations. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Greenville County or GREENVILLE, South Carolina?Contact True South Appraisals, LLC
Myth: The property's outside is determinate of the actual value of the property; it is unnecessary to do an interior inspection.
Fact: Property worth is concluded by a number of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived just by viewing the house from the outside.
Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their property, they legally own their appraisal report.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal report. Home buyers must be provided with a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal report so long as it meets the needs of their lending company.
Fact: A consumer should definitely look through their appraisal; there could be some questions or some concerns with the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, filled with useful and often-revealing information - 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: Appraisers are hired only to estimate home values in house sales involving mortgage-lending deals.
Fact: Based upon their qualifications and designations, appraisers can and may provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal report. An appraiser finds an opinion of value in the appraisal process and resulting report. A home inspector determines the condition of the house and its major components and reports their findings.