Appraisal myths & facts
It is required by law that an appraiser is required to be state-licensed to perform appraisals for federally-supported property purchases in Kentucky. The law allows you to acquire a copy of your finished appraisal from your lending agency after it has been produced. Contact our professional staff if you have any concerns about the appraisal process.
Myth: The value that is ascertained by the appraiser will be exactly the same as the market value.
Fact: It is probable that Kentucky, like most states, validates the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Usually when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the neighborhood have not been reassessed for years or more, it may vary wildly.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the cost of the home will vary.
Fact: The appraiser has no personal interest in the result of the appraisal report and should render his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should equate to the replacement cost of the house.
Fact: Market value is based on what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under undue influence to buy or sell. The dollar amount demanded to rebuild a property is what shows the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to figure out the cost of a home.
Fact: An appraisal report is a collection of data concluded from the home's size, location, proximity to some facilities, the condition of the house and the cost of recent comparable sales. You can count on Graham Appraisal's appraisers to be honest in assessing this data.
Myth: When the economy is on the rise and the worth of houses are reported to be rising by a certain percentage, the other properties in the proximity can be expected to increase based on that same percentage.
Fact: All increase of price is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable properties. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Barren County or Glasgow, KY?Contact our professional staff
Myth: You can generally see what a property is worth simply by looking at the exterior.
Fact: There are a multitude of different factors 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 found simply by viewing the home from the outside.
Myth: Because consumers pay for appraisal reports when applying for loans to buy or refinance their home, they own their appraisal.
Fact: Unless a lender releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Consumers have to be supplied with a version of the appraisal report upon written request because of the Equal Credit Opportunity Act.
Myth: There's no point for home buyers to even concern themselves with what the appraisal report contains so long as their lender is satisfied.
Fact: It is almost imperative for consumers to look at a copy of their report so that they can double-check the accuracy of the document, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can double as a record for the future, containing a great deal of data - including, but certainly 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the worth of a home during a sales transaction involving a lending institution.
Fact: Hiring an appraiser can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A home inspection serves the same purpose as an appraisal.
Fact: An appraisal does not serve the same purpose as an inspection report. The function of an appraisal is to conclude upon an opinion of fair market value during the appraisal process and the production of the appraisal report. A home inspector determines the condition of the property and its major components and reports their findings.