Appraisal myths debunked

It is enforced by the government that a real estate appraiser is required to be state-licensed to write appraisals for federally-related home purchases in Nevada. Also by law, you are entitled to demand a copy of the finished appraisal report from your lender. Contact our professional staff if you have any concerns about the appraisal process.

Myth: Assessed value will always equate to market value.

Fact: It could be that Nevada, like most states, validates the suggestion that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. At times when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the Las Vegas have not been reassessed for quite a while, it may vary wildly.

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

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

Myth: Any time market value is established, it should be the same as the replacement cost of the house.

Fact: Market value is found by what a willing buyer would likely pay a willing seller for a certain property, with neither being under undue influence to buy or sell. The dollar amount necessary to rebuild a home is what constitutes the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the value of a house.

Fact: An appraisal is a collection of data concluded from the home's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can depend on Las Vegas Appraisal Service, Inc.'s appraisers to be professional in assessing this information.

Myth: When the economy is doing well and the cost of houses are found to be appreciating by a certain percentage, the other homes in the area can be expected to appreciate based on that same percentage.

Fact: Any worth at which an appraiser arrives concerning a specific house is always personalized, based on certain factors concluded from the data of comparable homes and other specifications within the house itself. This is true in strong economic times as well as poor.

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

Fact: There are a multitude of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be found simply by viewing the house from the outside.

Myth: Since you're the one providing the money for the appraisal report when applying for the loan to buy or refinance your home, you own the ordered appraisal.

Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the appraisal. Under the Equal Credit Opportunity Act, any consumer demanding a copy of the report must be given one by their lending company.

Myth: There's no point for home buyers to even concern themselves with what the report contains so long as their lender is satisfied.

Fact: Only if consumers look over a copy of their report can they double-check its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data stored in an appraisal that could be useful to the home buyer 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 region.