Common myths about appraising

By law, an appraiser needs to be state-licensed to perform appraisals for federally-backed sales. Also by law, you have the ability to receive a copy of the completed appraisal report from your lending agency. Contact Karen A. Zirpoli - KAZ Appraisals, LLC if you have any questions about the appraisal process.

Myth: The value that is assessed by the appraiser should be exactly the same as the market value.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Usually when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the Nokesville have not been reassessed for quite some time, it may vary wildly.

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

Fact: There is no real interest on the part of the appraiser in the outcome of the appraisal report, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is created.

Myth: Market value will approximate replacement cost.

Fact: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a home without being under influence from any external party to purchase or sell. The dollar amount required to reconstruct a home is what shows the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to conclude the worth of a property.

Fact: An appraisal is an amalgamation of information based on the property's size, location, proximity to specific facilities, the condition of the property and the worth of recent comparable sales. You can rely on Karen A. Zirpoli - KAZ Appraisals, LLC's staff to be honest in assessing this data.

Myth: In a robust economy - when the worth of homes in a given area are reported to be appreciating by a particular percentage - the prices of individual houses in the area can be expected to appreciate by that same percentage.

Fact: Any price at which an appraiser arrives concerning a specific property is always personalized, based on certain factors found from the information of comparable homes and other specifications within the house itself. This is true in fair economic times as well as bad.

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

Fact: House value is determined by a multitude of factors, including - but not limited to - area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the information required.

Myth: Considering that the consumer is the one who puts up the capital to pay for the appraisal report when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.

Fact: Legally, the appraisal is owned by the lender unless the lender releases their interest in the appraisal. Consumers must be given a version of the document upon written request because of the Equal Credit Opportunity Act.

Myth: It doesn't mean anything to consumers what's in the report so long as it satisfies the needs of their lender.

Fact: Only if consumers examine a copy of their appraisal 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. Also, the appraisal report makes an invaluable record for future reference, containing useful and often-revealing data - 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.