Appraisal myths debunked
It is mandated by legal agencies that an appraiser is required to be state-licensed to offer appraisals for federally-related real estate sales in Colorado. The law entitles you to acquire a copy of your completed appraisal report from your lender after it has been provided. Contact us if you have any concerns about the appraisal procedure.
Myth: Assessed value generally will be similar to to market value.
Fact: While most states support the concept that assessed value is the same as estimated market value, this usually is not the case. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or properties in the area have not been reassessed for years or more, it may vary wildly.
Myth: The buyer or the seller may have impact in the value of the property depending upon for whom the appraiser is working.
Fact: The appraised value of the property does not affect the salary of the appraiser; as a result, the appraiser has no pressured interest in the cost of the house. This means that he will conduct task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: The replacement cost of the property will be is on par with the market value.
Fact: The way market value is arrived at is based on what a home buyer would likely pay a willing seller for a house without being under influence from any outside group to purchase or sell. If the property were rebuilt, the dollar amount needed to do so would set the replacement cost.
Myth: Certain formulae, such as the price per square foot of the property, are what appraisers use to determine the value of a home.
Fact: An appraisal report is an amalgamation of data based on the property's size, location, proximity to specific facilities, the condition of the home and the price of recent comparable sales. You can count on Appraise Colorado Inc's appraisers to be ethical in assessing this data.
Myth: In a robust economy - when the sales prices of houses in a given county are reported to be rising by a particular percentage - the values of individual properties in the area can be expected to appreciate by that same percentage.
Fact: All appreciation of worth is on a one-on-one basis, concluded by information 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 Arapahoe County or Parker, CO?Contact our professional staff
Myth: You can generally find 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 area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived simply by examining the home from the exterior.
Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their property, they own their appraisal.
Fact: Legally, the document is owned by the lending agency unless the lender relinquishes their interest in the report. However, consumers have to be provided with a copy of the document upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the requirements of their lending agency.
Fact: Only if consumers check out a copy of their appraisal 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. There is an incredible amount of data contained in an appraisal that should 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: The only reason someone would hire an appraiser is if a house needs its value estimated in a lender-based sales transaction.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: Appraisal reports are nothing like a home inspection. The purpose of the appraiser is to find an opinion of value in the appraisal process and through producing the report. A home inspector determines the condition of the house and its major components and reports their findings.