Common myths about appraising

By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-supported transactions. You have the ability to receive a copy of the completed appraisal report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.

Myth: Assessed value should be similar to to market value.

Fact: It is probable that North Carolina, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not always true. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby houses are perfect examples of why the price can vary.

Myth: Depending on if the appraisal is written for the buyer or the seller, the opinion of value of the property will vary.

Fact: The value of the house does not affect the salary of the appraiser; as such, the appraiser has no personal interest in the worth of the home. What this means is he will provide business with impartiality and objectivity regardless for whom the appraisal is created.

Myth: Market value will approximate replacement cost.

Fact: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular home. If the property were rebuilt, the dollar amount needed to do so would form the replacement cost.

Myth: There are specific methods that appraisers use to determine the value of a property, such as the price per square foot.

Fact: Appraisers make a full analysis of all factors in consideration to the price of a property, including its location, condition, size, proximity to facilities and recent costs of comparable properties.

Myth: In a strong economy - when the sales prices of houses in a given neighborhood are reported to be increasing by a particular percentage - the values of individual properties in the vicinity can be expected to increase by that same percentage.

Fact: Worth increase of a certain house has to be determined on a case-by-case basis, factoring in information on comparable properties and other relevant elements. It doesn't matter if the economy is on the rise or declining.

Myth: The home's exterior is determinate of the actual price of the property; there is no need to do an interior appraisal.

Fact: House value is determined by a number of factors, including area, condition, improvements, amenities, and market trends. An exterior inspection certainly can't provide all of the information necessary.

Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their house, they legally own their appraisal report.

Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the report. Under the Equal Credit Opportunity Act, any consumer asking for a copy of the document must be provided with one by their lending agency.

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

Fact: A consumer should definitely inspect their appraisal; there may be some questions or some concerns about the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information contained in an appraisal that will probably be useful to the consumer 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.