Appraisal myths debunked
It is required by the government that an appraiser is required to be state-licensed to write appraisals for federally-related property sales in Arizona. The law entitles you to receive a copy of your completed report from your lender after it has been produced. Contact us if you have any questions about the appraisal procedure.
Myth: A bedroom must have a closet.
Fact: Bedrooms do NOT need to have a closet!
Myth: Depending on whether the appraisal is done for the buyer or the seller, the value of the home will vary.
Fact: There is no real interest on the part of the appraiser in the outcome of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is written.
Myth: Market value should equal replacement cost.
Fact: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any external group to purchase or sell. The dollar amount required to reconstruct a home is what shows the replacement cost.
Myth: There are certain ways that appraisers use to determine the value of a house, such as the price per square foot.
Fact: An appraisal is a collection of data based on the home's size, location, proximity to undesirable facilities, the condition of the house and the price of recent comparable sales. You can rely on Maven Appraisal Services, LLC's appraisers to be forthright in assessing this data.
Myth: When the economy is doing well and the value of homes are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to appreciate based on that same percentage.
Fact: All appreciation of price is on a case-by-case basis, found by data on relevant elements and the data of comparable homes. It makes no difference whether the economy is powerful or poor.
Have other questions about appraisers, appraising or real estate in Maricopa County or Gilbert, AZ?Contact us
Myth: Since the consumer is the one who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.
Fact: The document is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the document. However, consumers have to be provided with a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even care about what the appraisal contains so long as their lending institution is satisfied.
Fact: It is a very good idea for consumers to go through 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 can double as a record for the future, as it contains a great deal of data - including, but 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: Appraisers are hired only to estimate building values in property sales involving mortgage-lending deals.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series 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 house inspection serves the same purpose as an appraisal.
Fact: An appraisal does not fulfill the same purpose as an inspection report. The task of the appraiser is to form an opinion of value in the appraisal process and through creating the report. House inspectors will compose a report that will express the condition of the house and its major components and possible damage.