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Common myths about appraising

Myth: Market value must be similar to the assessed value of the property.
Fact: While most states uphold the idea that assessed value is equal to estimated market value, this often is not the case. Generally when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Cleveland have not been reassessed for a good length of time, it may vary wildly.
Myth: The appraised value of a house will vary depending upon whether the appraisal is provided for the buyer or the seller.
Fact: There is no real interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is ordered.
Myth: Market value will equal replacement cost.
Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under pressure to buy or sell. The dollar amount needed to rebuild a home is what forms the replacement cost.
Myth: There are specific methods that appraisers use to find the value of a home, such as the price per square foot.
Fact: There are many differing processes that an appraiser will use to make a full investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to certain facilities and the opinion of value of recently sold comparable homes.
Myth: When the economy is on the rise and the worth of properties are reported to be increasing by a certain percentage, the other homes in the neighborhood can be expected to appreciate based on that same percentage.
Fact: Worth appreciation of a certain house is always concluded on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in strong economic times as well as poor.
Myth: Just seeing what the property looks like on the outside gives a good idea of its value.
Fact: There are a number of different variables that show the value of a house; these factors include area, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply examining the property from the outside.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their property, they own their appraisal.
Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. Consumers must be provided with a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal report so long as it satisfies the requirements of their lending group.
Fact: It is very important for home buyers to go through a copy of their appraisal report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect record for future reference, comprised of useful and often-revealing data - including 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 proximity.
Myth: Appraisers are hired only to estimate home values in house sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can perform a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: A house inspection serves the same purpose as an appraisal.
Fact: A home inspection report has a completely different purpose than an appraisal report. The reason behind an appraisal is to find an opinion of fair market value during the appraisal process and the production of the appraisal. House inspectors will compose a report that will determine the condition of the home and its major components and possible damage.
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It is enforced by the government that an appraiser needs to be state-licensed to create appraisals for federally-supported property transactions in Ohio. Also by law, you are entitled to request a copy of the finished appraisal report from your lender. Contact our professional staff if you have any questions about the appraisal procedure.

Have other questions about appraisers, appraising or real estate in Cuyahoga County or Cleveland, Ohio?

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