Common myths about appraising

Legally, a real estate appraiser needs to be state certified to write legitimate appraisal reports for federally-backed transactions. Also by law, you have the right to request a copy of the finished appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.

Myth: Assessed value should be similar to to market value.

Fact: This is not often the case; most states do support the idea that the assessed value is the same as market value, but not always. Interior reconstruction that the assessor is not aware of and a lack of reassessment on nearby houses are excellent examples of why the price can vary.

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

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

Myth: The replacement cost of the property is always is on par with the market value.

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

Myth: Certain formulae, like the price per square foot, are what appraisers use to arrive at the worth of a property.

Fact: An appraisal report is a collection of data concluded from the house's size, location, proximity to certain facilities, the condition of the home and the cost of recent comparable sales. You can count on Premier Appraisals, Inc.'s appraisers to be honest in assessing this data.

Myth: When the economy is doing well and the value of homes are found to be rising by a certain percentage, the other houses in the area can be expected to increase based on that same percentage.

Fact: All appreciation of price is on an individual basis, found by information on relevant considerations and the data of comparable properties. It makes no difference if the economy is robust or terrible.

Have other questions about appraisers, appraising or real estate in Suffolk County or Nesconset, NY?

Contact Premier Appraisals, Inc.

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

Fact: There are a number of different variables that determine the value of a house; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply viewing the house from the outside.

Myth: Since you're the one providing the money for the appraisal report when applying for the loan to buy or refinance your home, you own the provided appraisal report.

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal. Home buyers have to be provided with a copy of the appraisal report through request as per the Equal Credit Opportunity Act.

Myth: Consumers need not care about what is in their appraisal so long as it satisfies the requirements of their lending agency.

Fact: Only if consumers 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. There is a wealth of information stored in an appraisal that will probably 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 area.

Myth: The only reason someone would order an appraisal is if a property needs its price assessed in a lender sales transaction.

Fact: Based upon their qualifications and designations, appraisers can and often do provide a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: An appraisal is no different than a home inspection.

Fact: Appraisal reports are nothing like a home inspection. The reason behind an appraisal report is to find an opinion of fair market value during the appraisal process and the completion of the report. A home inspector analyzes the condition of the building and its major components and reports these findings.