Appraisal myths debunked
It is enforced by law that an appraiser needs to be state-licensed to write appraisals for federally-related real estate sales in Colorado. You have the ability to receive a copy of the finished appraisal report from your lender. Contact Assured Appraisal Services, LLC if you have any questions about the appraisal process.
Myth: Market value must be the same as the assessed value of the property.
Fact: It is probable that Colorado, like most states, supports the common myth that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. 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 extended period of time.
Myth: The buyer or the seller can have impact in the value of the property depending upon for whom the appraiser is working.
Fact: There is no vested interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is ordered.
Myth: Any time market value is established, it should equal the replacement cost of the house.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. The dollar amount demanded to rebuild a house is what forms the replacement cost.
Myth: Specific formulae, like the price per square foot, are the ways appraisers use to arrive at the value of a house.
Fact: An appraisal is an assertion of information based on the property's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can rely on Assured Appraisal Services, LLC's appraisers to be professional in assessing this data.
Myth: In a robust economy - when the sales prices of houses in a given region are found to be appreciating by a particular percentage - the costs of individual homes in the proximity can be expected to rise by that same percentage.
Fact: Any price at which an appraiser concludes in regards to a specific house is always personalized, based on certain factors concluded from the information of comparable homes and other specifications within the house itself. This is true in excellent economic times as well as poor.
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Myth: The home's outside is determinate of the actual value of the home; there is no need to do an interior inspection.
Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. Obviously, none of these things can be derived simply by examining the property from the exterior.
Myth: Since the consumer is the person who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Unless a lending agency releases its vestment in the document, it is legally owned by the lending company that purchased the appraisal. Because of the Equal Credit Opportunity Act, any home buyer requesting a copy of the document must be given it by their lender.
Myth: Home buyers need not be concerned with what is in their appraisal document so long as it exceeds the requirements of their lending group.
Fact: A consumer should definitely inspect their report; there might be some questions or some concerns with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an excellent record for future reference, comprised of useful and often-revealing data - including 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: The only reason someone would hire an appraiser is if a home needs its cost estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: You shouldn't need to get an appraisal if you have had a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The job of the appraiser is to form an opinion of value in the appraisal process and through writing the report. A home inspector analyzes the condition of the home and its main components and reports these findings.