Appraisal myths debunkedBy law, an appraiser is enforced to be state-licensed to perform appraisals for federally-backed purchases. Also by law, you have the ability to receive a copy of the finished appraisal report from your lending agency. Contact our professional staff if you have any questions about the appraisal process. Myth: Market value should be similar to the assessed value of the property.Fact: It might be that New Jersey, like most states, validates the common myth that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are prime examples of why the price can vary. Myth: The buyer or the seller can have impact in the cost of the house depending upon for whom the appraiser is working.Fact: There is no vested interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is written. ![]() Myth: Any time market value is found, it should be similar to the replacement cost of the property.Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a property without being under duress from any outside party to buy or sell. Replacement cost is the dollar amount necessary to reconstruct a property in-kind. Myth: There are specific methods that appraisers use to find the value of a home, like the price per square foot.Fact: An appraisal is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the price of recent comparable sales. You can depend on Tight & Right Real Estate Valuation's staff to be honest in assessing this information. Myth: When the economy is doing well and the sales prices of properties are found to be appreciating by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.Fact: Price increase of a specific property must be determined on an individualized basis, factoring in data on comparable houses and other relevant considerations. This is true in good economic times as well as bad. Have other questions about appraisers, appraising or real estate in Union County or Princeton, NJ? Contact Tight & Right Real Estate ValuationMyth: You can often find what a home is worth simply by looking at the outside.Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the data needed. Myth: Since you're the one coughing up the cash for the appraisal report when applying for the loan to buy or refinance real estate, you own the produced appraisal.Fact: Legally, the report is owned by the lending agency unless the lender releases their interest in the document. By the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be given it by their lender. Myth: Consumers need not worry about what is in their document so long as it exceeds the requirements of their lending company.Fact: A consumer should definitely inspect their appraisal; there might be some questions or some concerns with 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 contained in an report that can 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. ![]() Myth: The only reason someone would hire an appraiser is if a home needs its value assessed in a lender-based sales transaction.Fact: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis. Myth: An appraisal is the same as a home inspection report.Fact: A home inspection has a completely different purpose than an appraisal. The job of the appraiser is to conclude an opinion of value in the appraisal process and through writing the report. House inspectors will produce a report that will express the condition of the house and its major components and possible damage. |
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