Appraisal myths debunked

It is enforced by the government that a real estate appraiser is required to be state-licensed to create appraisals for federally-related property purchases in New York. You are also entitled by law to receive a copy of the completed report from your lender. Contact DMP Appraisal Services, Inc. if you have any concerns about the appraisal process.

Myth: Market value will always be the same as the assessed value of the property.

Fact: While most states uphold the idea that assessed value approximates estimated market value, this usually is not the case. Usually when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Montgomery have not been reassessed for quite a while, it may vary wildly.

Myth: The appraised value of a property will change depending upon whether the appraisal is conducted for the buyer or the seller.

Fact: The appraiser has no personal interest in the result of the report and should conduct services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: Any time market value is established, it should be the same as the replacement cost of the home.

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

Myth: There are certain ways that appraisers use to find the cost of a home, like the price per square foot.

Fact: An appraisal is an assertion of data based on the home's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can count on DMP Appraisal Services, Inc.'s staff to be forthright in assessing this data.

Myth: When the economy is strong and the sales prices of properties are found to be rising by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.

Fact: All appreciation of value is on an individual basis, concluded by information on relevant conditions and the data of comparable houses. It makes no difference whether the economy is good or poor.

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

Fact: There are a number of different variables that determine property value; these factors include area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be derived just by inspecting the house from the outside.

Myth: Considering that the consumer is the one who provides the funding to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.

Fact: Legally, the document is owned by the lender unless the lender releases their interest in the document. However, consumers must be provided with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.

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

Fact: A home buyer should definitely inspect their appraisal report; there will probably be some questions or some worries with the accuracy of the report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, as it contains an exorbitant amount of information - 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.