Appraisal myths debunked

Legally, an appraiser needs to be state certified to produce legitimate real estate appraisals for federally-supported purchase. Also by law, you are entitled to demand a copy of the completed appraisal report from your lender. Contact Las Vegas Appraisal Service, Inc. if you have any concerns about the appraisal procedure.

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

Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when homes in the area have not been reassessed for an prolonged period.

Myth: The buyer or the seller often will have impact in the cost of the house depending upon for whom the appraiser is working.

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

Myth: Market value should equal replacement cost.

Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a property without being under influence from any external party to purchase or sell. If the house were reconstructed, the dollar amount necessary to do so would form the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to come to the worth of a home.

Fact: Appraisers make a detailed analysis of all factors in consideration to the worth of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

Myth: In a robust economy - when the values of homes in a given area are found to be increasing by a certain percentage - the costs of individual properties in the vicinity can be expected to appreciate by that same percentage.

Fact: Worth appreciation of a certain property must be concluded on an individualized basis, factoring in information on comparable properties and other relevant considerations. It makes no difference if the economy is excellent or poor.

Myth: You can generally tell what a property is worth simply by looking at the outside.

Fact: Property worth is determined by a number of variables, including location, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found just by looking at the home from the outside.

Myth: Because the consumer is the one who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.

Fact: The appraisal is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be provided with it by their lender.

Myth: Home buyers need not worry about what is in their report so long as it satisfies the requirements of their lending institution.

Fact: Only if consumers read a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes a valuable record for future reference, containing 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 area.