Common myths about appraising

Legally, a real estate appraiser is required to be state certified to perform legitimate real estate appraisals for federally-supported sales. Also by law, you have the right to demand a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: Market value needs to be equivocal to the assessed value of the property.

Fact: It might be that Ohio, like most states, supports the idea that the assessed value is no different from the market value; however, this is not often the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby houses are exact examples of why this occurs.

Myth: The value of a property will vary depending upon if the appraisal is ordered for the buyer or the seller.

Fact: There is no vested interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, regardless for whom the appraisal is conducted.

Myth: Any time market value is established, it should be the same as the replacement cost of the house.

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 influence from any external group to purchase or sell. If the home were reconstructed, the dollar amount needed to do so would form the replacement cost.

Myth: Appraisers use a formula, like a specific price per square foot, to conclude the value of a house.

Fact: There are many varied ways that an appraiser will use to make an in-depth investigation of every factor in consideration of the property, such as the size, location, condition, how close it is to undesirable facilities and the cost of recently sold comparable properties.

Myth: As homes increase their worth by a specific percentage - in a robust economy - the properties within the same neighborhood are figured to increase by the same amount.

Fact: Any worth at which an appraiser arrives in regards to a specific property is always individualized, based on certain factors pulled from the information of comparable houses and other considerations within the property itself. It makes no difference whether the economy is good or on the decline.

Myth: The house's outside is determinate of the actual worth of the home; it is unnecessary to do an interior appraisal.

Fact: House worth is concluded by a number of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data required.

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

Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the appraisal. Due the Equal Credit Opportunity Act, any home buyer asking for a copy of the document must be given one by their lending company.

Myth: Consumers need not be concerned with what is in their report so long as it meets the requirements of their lending agency.

Fact: Only if home buyers look at a copy of their appraisal report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, containing a great deal of information - 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.