Appraisal myths debunked

Legally, an appraiser needs to be state certified to write substantiated appraisal reports for federally-related sales. The law allows you to acquire a copy of your completed report from your lender after it has been provided. Contact our professional staff if you have any questions about the appraisal process.

Myth: The value that is assessed by the appraiser will be equivalent to the market value.

Fact: It could be that Ohio, like most states, supports the idea that the assessed value equates to the market value; however, this is sometimes the exception rather than the rule. Generally when interior remodeling has occurred and the assessor is unaware of the improvement or properties in the Vandalia have not been reassessed for a good length of time, it may vary wildly.

Myth: The buyer or the seller sometimes may have an influence in the cost of the property depending upon for whom the appraiser is working.

Fact: There is no personal interest on the part of the appraiser in the result of the appraisal, 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 certain property, with neither being under duress to buy or sell. If the home were reconstructed, the dollar amount necessary to do so would make up the replacement cost.

Myth: Certain methods, such as the price per square foot of the property, are what appraisers use to come to the cost of a home.

Fact: An appraisal report is an amalgamation of data concluded from the home's size, location, proximity to specific facilities, the condition of the property and the worth of recent comparable sales. You can depend on B. E. Schenck & Associates, LLC's staff to be forthright in assessing this information.

Myth: As properties increase their worth by a certain percentage - in a robust economy - the houses in proximity are figured to appreciate by the same amount.

Fact: Cost increase of a specific house has to be determined on a case-by-case basis, factoring in data on comparable houses and other relevant considerations. It makes no difference whether the economy is strong or terrible.

Myth: Just looking at what the property looks like on the outside gives an idea of its worth.

Fact: Property value is determined by a multitude of factors, including area, condition, improvements, amenities, and market trends. Obviously, none of these factors can be found just by looking at the home from the exterior.

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

Fact: The report is, in fact, legally owned by the lender - unless the lender "relinquishes its interest" in the appraisal. However, home buyers must be provided with a copy of the document upon written request, because of the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their appraisal report so long as it satisfies the requirements of their lending institution.

Fact: A home buyer should definitely inspect their report; there may be some questions or some worries with the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of data contained in an appraisal report that can 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 proximity.