Common myths about appraising

It is mandated by legal agencies that an appraiser must be state-licensed to create appraisals for federally-related home sales in Alabama. You are also entitled by law to acquire a copy of the finished report from your lender. Contact Shamrock Appraisals, Inc. if you have any concerns about the appraisal procedure.

Myth: Market value will always be similar to the assessed value of the property.

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

Myth: Depending on whether the appraisal is ordered for the buyer or the seller, the value of the property will vary.

Fact: The opinion of value of the home does not affect the pay of the appraiser; due to this, the appraiser has no pressured interest in the worth of the home. What this means is he will render services with impartiality and independence regardless for whom the appraisal is produced.

Myth: Any time market value is found, it should equal the replacement cost of the house.

Fact: Without any suggestion from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific house. The dollar amount demanded to rebuild a home is what forms the replacement cost.

Myth: Appraisers use a calculation, like a certain price per square foot, to figure out the value of a property.

Fact: An appraisal is an assertion of information concluded from the property's size, location, proximity to some facilities, the condition of the property and the cost of recent comparable sales. You can rely on Shamrock Appraisals, Inc.'s staff to be forthright in assessing this data.

Myth: In a powerful economy - when the values of homes in a given area are found to be rising by a certain percentage - the prices of individual properties in the proximity can be expected to increase by that same percentage.

Fact: Any price at which an appraiser concludes in regards to a specific home is always individualized, based on certain factors pulled from the data of comparable properties and other considerations within the house itself. It doesn't matter if the economy is on the rise or declining.

Myth: Just examining what the house looks like on the outside gives an idea of its worth.

Fact: Property value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the house from the outside.

Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.

Fact: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the report. However, consumers must be provided with a copy of the document upon written request, through the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal report so long as it satisfies the requirements of their lending company.

Fact: A consumer should definitely read through their appraisal report; there might be some questions or some worries about 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 a wealth of data stored in an appraisal 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 vicinity.