Common myths about appraising

It is required by legal agencies that a real estate appraiser is required to be state-licensed to write appraisals for federally-supported property purchases in California. The law gives you the right to get a copy of your finished appraisal from your lending agency after it has been produced. Contact us if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser should be equivalent to the market value.

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Escondido have not been reassessed for a good length of time, it may vary wildly.

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

Fact: The opinion of value of the home does not affect the pay of the appraiser; as such, the appraiser has no preconceived interest in the cost of the property. Obviously, he will conduct task with impartiality and objectivity regardless for whom the appraisal is created.

Myth: The replacement cost of the house should be is on par with the market value.

Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under duress from any outside group to buy or sell. If the house were rebuilt, the dollar amount necessary to do so would be the replacement cost.

Myth: There are specific ways that appraisers use to find the value of a house, like the price per square foot.

Fact: An appraisal is an assertion of information concluded from the property's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can rely on The Appraisal Firm's staff to be professional in assessing this information.

Myth: As properties appreciate by a specific percentage - in a strong economy - the houses nearby are expected to appreciate by the same amount.

Fact: Any cost at which an appraiser concludes concerning a particular house is always individualized, based on certain factors pulled from the information of comparable homes and other considerations within the house itself. It makes no difference if the economy is robust or terrible.

Have other questions about appraisers, appraising or real estate in San Diego County or Escondido, CA?

Contact us

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

Fact: Property worth is concluded by a multitude of variables, including area, condition, improvements, amenities, and market trends. An external inspection obviously can't provide all of the data necessary.

Myth: Because consumers fund appraisals when applying for loans to purchase or refinance their home, they own their appraisal report.

Fact: Legally, the report is owned by the lending company unless the lender releases their interest in the report. However, consumers must be given a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.

Myth: There's no point for consumers to even care about what the report contains so long as their lending company is fine with the contents therein.

Fact: A consumer should definitely inspect their document; there may be some questions or some worries with the accuracy of the report that need to be addressed. 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 report that should 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 proximity.

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

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

Myth: An appraisal is the same as a home inspection.

Fact: Appraisal reports are completely different than a home inspection report. The purpose of the appraiser is to form an opinion of value in the appraisal process and through creating the report. A home inspector assesses the condition of the house and its major components and reports these findings.