Appraisal myths & facts
It is mandated by legal agencies that an appraiser needs to be state-licensed to write appraisals for federally-supported real estate purchases in Georgia. Also by law, you have the ability to request a copy of the finished appraisal report from your lending agency. Contact us if you have any questions about the appraisal process.
Myth: Market value will be equivocal to the assessed value of the property.
Fact: It might be that Georgia, like most states, supports the idea that the assessed value equals the market value; however, this is not always true. Examples include when interior remodeling 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 value of a home will vary depending upon whether the appraisal is conducted for the buyer or the seller.
Fact: The price of the home does not affect the pay of the appraiser; due to this, the appraiser has no pressured interest in the value of the property. What this means is he will conduct business with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement value of the house 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 specific property, with neither being under pressure to buy or sell. The dollar amount necessary to rebuild a house is what constitutes the replacement cost.
Myth: Certain formulae, such as the price per square foot, are the ways appraisers use to determine the worth of a home.
Fact: Appraisers make a full analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent costs of comparable homes.
Myth: When the economy is on the rise and the worth of properties are reported to be increasing by a certain percentage, the other properties in the neighborhood can be expected to appreciate based on that same percentage.
Fact: All increase of price is on a one-on-one basis, concluded by information on relevant elements and the data of comparable homes. It doesn't matter if the economy is on the rise or declining.
Have other questions about appraisers, appraising or real estate in Douglas County or DOUGLASVILLE, GA?Contact A Bright Appraisal
Myth: The house's exterior is determinate of the actual worth of the property; there is no need to do an interior inspection.
Fact: To find an accurate price beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. Obviously, none of these variables can be derived simply by looking at the home from the outside.
Myth: Since the consumer is the person who provides the capital to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: The document is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be given one by their lending company.
Myth: Home buyers need not care about what is in their report so long as it satisfies the requirements of their lending company.
Fact: It is a very good idea for consumers to peruse a copy of their appraisal report so that they can verify the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal report that will probably be useful to the consumer 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending company.
Fact: Appraisers can have many different qualifications and designations which allow them to provide a variety of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are nothing like a home inspection report. An appraiser forms an opinion of value in the appraisal process and resulting appraisal. House inspectors will produce a report that will determine the condition of the house and its major components and possible damage.