Appraisal myths debunked

By law, an appraiser is enforced to be state-licensed to perform appraisals for federally-related transactions. You also have the right to acquire a copy of the completed appraisal from your lender. Contact Furr Appraisal Service if you have any questions about the appraisal procedure.

Myth: Assessed value generally will be similar to to market value.

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

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

Fact: The appraiser has no personal interest in the outcome of the appraisal report and should complete his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: Any time market value is found, it should equate to the replacement cost of the property.

Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a house without being under pressure from any outside party to buy or sell. The dollar amount demanded to reconstruct a house is what shows the replacement cost.

Myth: There are specific ways that real estate appraisers use to determine the value of a house, like the price per square foot.

Fact: An appraisal is a collection of data based on the property's size, location, proximity to certain facilities, the condition of the home and the worth of recent comparable sales. You can count on Furr Appraisal Service's staff to be honest in assessing this information.

Myth: As properties increase their worth by a certain percentage - in a strong economic state - the houses within the same neighborhood are expected to appreciate by the same amount.

Fact: Worth appreciation of a certain home is always concluded on a case-by-case basis, factoring in data on comparable properties and other relevant considerations. It makes no difference if the economy is strong or poor.

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

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the home on a variety of factors based on location, condition, improvements, amenities, and current market trends. There's no possible way to get all of this data from simply looking at the home from the exterior.

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

Fact: Legally, the appraisal is owned by the lending agency unless the lender relinquishes their interest in the document. Due the Equal Credit Opportunity Act, any home buyer requesting a copy of the report must be provided with one by their lending agency.

Myth: It doesn't mean anything to consumers what's in the appraisal so long as it meets the requirements of their lender.

Fact: A home buyer should definitely read through their appraisal; there may be some questions or some concerns about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can double as a record for the future, containing a great deal 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 proximity.