Appraisal myths debunked

By law, an appraiser is required to be state-licensed to produce appraisals for federally-supported sales. You also have the right to demand a copy of the completed report from your lending agency. Contact Las Vegas Appraisal Service, Inc. if you have any questions about the appraisal procedure.

Myth: Assessed value generally will be similar to to market value.

Fact: It might be that Nevada, like most states, supports the suggestion that the assessed value equates to the market value; however, this is not always true. Examples include when interior remodeling has occurred 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: The buyer or the seller will have leverage in the value of the house depending upon for whom the appraiser is working.

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

Myth: Any time market value is found, it should equate to the replacement cost of the property.

Fact: The way market value is found is based on what a buyer would be willing to pay a willing seller for a property without being under duress from any external group to buy or sell. The dollar amount needed to reconstruct a house is what shows the replacement cost.

Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a home.

Fact: There are many numerous processes that an appraiser will use to make a detailed analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to certain facilities and the value of recently sold comparable homes.

Myth: When the economy is on the rise and the value of homes are reported to be appreciating by a certain percentage, the other properties in the area can be expected to rise based on that same percentage.

Fact: Worth appreciation of a specific home is always concluded on an individualized basis, factoring in information on comparable properties and other relevant elements. It makes no difference whether the economy is excellent or on the decline.

Have other questions about appraisers, appraising or real estate in Clark County or Las Vegas, Nevada?

Contact Las Vegas Appraisal Service, Inc.

Myth: The home's exterior is determinate of the actual worth of the home; it is unnecessary to do an interior inspection.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on area, condition, improvements, amenities, and current market trends. There's no possible way to get all of this information from simply inspecting the property from the exterior.

Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance real estate, they legally own their appraisal.

Fact: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending company that ordered the appraisal. Home buyers must be provided with a copy of the report upon written request because of the Equal Credit Opportunity Act.

Myth: There's no reason for home buyers to even worry about what the appraisal contains so long as their lending institution is fine with the contents therein.

Fact: Only if home buyers check out 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. Also, the appraisal report makes an invaluable record for future reference, filled with useful and often-revealing information - 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.

Myth: The only reason someone would hire an appraiser is if a property needs its worth estimated in a lender sales transaction.

Fact: Appraisers can have many different qualifications and designations which allow them to perform a multitude of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.

Myth: You don't have to get an appraisal if you get a home inspection.

Fact: Appraisal reports are completely different than a home inspection. An appraiser concludes on an opinion of value in the appraisal process and resulting report. The task of a home inspector is to determine the condition of the home and its major components, then compose a report on these inspection.