Appraisal myths & facts

It is required by legal agencies that an appraiser is required to be state-licensed to offer appraisal reports for federally-related real estate sales in Alabama. Also by law, you have the right to receive a copy of the completed appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal process.

Myth: Assessed value should be the same as to market value.

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

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: The appraised value of the home does not affect the pay of the appraiser; as a result, the appraiser has no pressured interest in the opinion of value of the house. Obviously, he will provide business with impartiality and independence regardless for whom the appraisal is created.

Myth: The replacement value of the property should be is on par with the market value.

Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain home, with neither being under duress to buy or sell. The dollar amount required to rebuild a home is what constitutes the replacement cost.

Myth: Certain formulae, like the price per square foot of the property, are the ways appraisers use to come to the price of a house.

Fact: An appraisal report is an assertion of information based on the home's size, location, proximity to certain facilities, the condition of the property and the cost of recent comparable sales. You can depend on Shamrock Appraisals, Inc.'s appraisers to be honest in assessing this information.

Myth: As homes appreciate by a specific percentage - in a robust economy - the houses around the appreciating properties are expected to increase by the same amount.

Fact: Cost increase of a specific home has to be concluded on an individualized basis, factoring in information on comparable houses and other relevant specifications within the property itself. This is true in strong economic times as well as poor.

Myth: You can commonly find what a house is worth simply by looking at the exterior.

Fact: Property worth is determined by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by examining the property from the outside.

Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to purchase or refinance your house, you own the provided appraisal.

Fact: The document is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. Under the Equal Credit Opportunity Act, any home buyer requesting a copy of the appraisal report must be provided with one by their lending agency.

Myth: Home buyers need not be concerned with what is in their appraisal document so long as it exceeds the requirements of their lending institution.

Fact: A consumer should definitely read through their appraisal; there could be some questions or some worries about the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal 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.