Common myths about appraising
It is enforced by law that a real estate appraiser must be state-licensed to offer appraisals for federally-related property purchases in Arizona. You also have the right to demand a copy of the finished appraisal from your lender. Contact us if you have any questions about the appraisal procedure.
Myth: Market value must be equivocal to the assessed value of the property.
Fact: While most states uphold the suggestion that assessed value is equal to estimated market value, this usually is not the case. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when properties in the vicinity have not been reassessed for an extended period.
Myth: Depending on if the appraisal is provided for the buyer or the seller, the value of the home will vary.
Fact: The cost of the home does not affect the payment of the appraiser; due to this, the appraiser has no pressured interest in the value of the property. What this means is he will provide job with impartiality and objectivity regardless for whom the appraisal is conducted.
Myth: The replacement cost of the property should be is on par with the market value.
Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under undue influence to buy or sell. If the property were rebuilt, the dollar amount required to do so would form the replacement cost.
Myth: Specific formulae, such as the price per square foot of the property, are the ways appraisers use to determine the value of a property.
Fact: An appraisal report is an assertion of data concluded from the property's size, location, proximity to certain facilities, the condition of the house and the worth of recent comparable sales. You can depend on Northern Arizona Appraisal, Inc.'s staff to be ethical in assessing this data.
Myth: When the economy is robust and the value of houses are reported to be increasing by a certain percentage, the other homes in the proximity can be expected to increase based on that same percentage.
Fact: Any value at which an appraiser concludes in regards to a specific house is always personalized, based on certain factors pulled from the data of comparable houses and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Maricopa County or Phoenix, AZ?Contact Northern Arizona Appraisal, Inc.
Myth: The property's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.
Fact: There are a multitude of different variables that show property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the data necessary.
Myth: Since you're the one providing the money for the appraisal report when applying for your loan to buy or refinance real estate, you own the produced appraisal.
Fact: The document is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the document. Home buyers must be provided with a copy of the document upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the needs of their lending company.
Fact: It is a very good idea for consumers to look at a copy of their report so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, containing an exorbitant amount 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 proximity.
Myth: The only reason someone would hire an appraiser is if a house needs its cost assessed 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 don't have to get an appraisal if you order a home inspection.
Fact: A home inspection report has a completely different purpose than an appraisal report. The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal. The purpose of a home inspector is to determine the condition of the property and its main components, then compose a report on these conclusions.