Common myths about appraising

Legally, a real estate appraiser has to be state certified to create legitimate appraisal reports for federally-backed sales. Also by law, you have the right to receive a copy of the completed report from your lender. Contact us if you have any questions about the appraisal procedure.

Myth: The value that is ascertained by the appraiser is required to be exactly the same as the market value.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are excellent examples of why there might be a differential in price.

Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the property will vary.

Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is written.

Myth: The replacement cost of the house is always 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 house. The dollar amount demanded to reconstruct a property is what shows the replacement cost.

Myth: Appraisers use a calculation, such as a specific price per square foot, to figure out the value of a house.

Fact: An appraisal is an amalgamation of data based on the property's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can depend on Metric Appraisals, LLC's appraisers to be forthright in assessing this data.

Myth: In a robust economy - when the worth of houses in a given neighborhood are found to be increasing by a particular percentage - the costs of individual homes in the vicinity can be expected to appreciate by that same percentage.

Fact: Any price at which an appraiser concludes in regards to a particular home is always individualized, based on certain factors found from the information of comparable houses and other specifications within the house itself. This is true in good economic times as well as bad.

Myth: Just looking at what the property looks like on the outside gives an excellent idea of its cost.

Fact: To determine an accurate worth beyond all doubt, an appraiser must inspect the home on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these things can be found simply by viewing the property from the exterior.

Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance your house, you own the ordered appraisal.

Fact: Legally, the document is owned by the lending agency unless the lender releases their interest in the document. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be provided with it by their lending agency.

Myth: There's no reason for home buyers to even concern themselves with what the report contains so long as their lending company is fine with the contents therein.

Fact: Only if consumers examine a copy of their appraisal can they ensure 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 appraisal report can double 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 vicinity.