Appraisal myths & facts

It is required by the government that an appraiser must be state-licensed to offer appraisal reports for federally-related home purchases in New York. The law allows you to acquire a copy of your finished report from your lender after it has been provided. Contact Premier Appraisals, Inc. if you have any concerns about the appraisal procedure.

Myth: Market value will always be the same as the assessed value of the property.

Fact: It is probable that New York, like most states, supports the suggestion that the assessed value equals the market value; however, this is not always true. Interior remodeling that the assessor is unaware of and a dearth of reassessment on nearby houses are excellent examples of why there might be a differential in price.

Myth: Depending on whether the appraisal is produced for the buyer or the seller, the value of the property will vary.

Fact: The value of the property does not affect the pay of the appraiser; as such, the appraiser has no personal interest in the cost of the property. This means that he will complete his services with impartiality and independence regardless for whom the appraisal is provided.

Myth: The replacement cost of the home will be is on par with the market value.

Fact: The way market value is found 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 group to purchase or sell. Replacement cost is the dollar amount required to rebuild a house in-kind.

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

Fact: Appraisers make an exhaustive analysis of all factors in consideration to the value of a home, including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Myth: When the economy is robust and the sales prices of homes are found to be appreciating by a certain percentage, the other houses in the proximity can be expected to increase based on that same percentage.

Fact: Any price at which an appraiser concludes concerning a specific house is always personalized, based on certain factors pulled from the data of comparable homes and other considerations within the property itself. It makes no difference whether the economy is good or on the decline.

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

Fact: There are a number of different variables that determine property value; these factors include location, 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 appraisal reports when applying for loans to purchase or refinance their home, they legally own their appraisal report.

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

Myth: It doesn't concern consumers what's in the report so long as it meets the requirements of their lending company.

Fact: Only if home buyers read a copy of their appraisal report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored in an report that will probably be useful to the home buyer 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.