Common myths about appraising

Legally, an appraiser has to be state certified to produce substantiated appraisal reports for federally-related purchase. You have the ability to request a copy of the completed appraisal from your lender. Contact Wabash Valley Appraisal if you have any concerns about the appraisal process.

Myth: The value that is ascertained by the appraiser must be equivalent to the market value.

Fact: It is possible that Indiana, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not always true. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other homes in the TERRE HAUTE have not been reassessed for years or more, it may vary wildly.

Myth: The opinion of value of a home will differ depending upon whether the appraisal is provided for the buyer or the seller.

Fact: There is no personal interest on the part of the appraiser in the result of the appraisal report, therefore he will conduct his work with impartiality and independence, no matter for whom the appraisal is conducted.

Myth: Any time market value is found, it should equal the replacement cost of the home.

Fact: Market value is derived from what a willing buyer would be interested in paying a willing seller for a particular home, with neither being under pressure to buy or sell. Replacement value is the dollar amount necessary to rebuild a house in-kind.

Myth: Appraisers use a formula, such as a certain price per square foot, to conclude the cost of a property.

Fact: Appraisers complete a detailed analysis of all factors pertaining to the value of a property, including its location, condition, size, proximity to facilities and recent costs of comparable houses.

Myth: When the economy is robust and the worth of homes are reported to be rising by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.

Fact: All increase of price is on a case-by-case basis, determined by data on relevant elements and the data of comparable properties. This is true in excellent economic times as well as poor.

Myth: The house's outside is determinate of the actual value of the property; it is unnecessary to do an interior appraisal.

Fact: Property worth is determined by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from simply inspecting the house from the exterior.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their house, they own their appraisal.

Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. However, consumers must be supplied with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.

Myth: Home buyers need not be concerned with what is in their report so long as it meets the necessities of their lending company.

Fact: Only if consumers examine a copy of their appraisal report can they double-check its accuracy and possibly need to question the result. 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, since it contains an exorbitant amount of information - including, but 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 area.