Appraisal myths & facts

It is required by legal agencies that an appraiser needs to be state-licensed to perform appraisal reports for federally-related home sales in Virginia. You also have the right to acquire a copy of the completed appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.

Myth: Market value will always be equivocal to the assessed value of the property.

Fact: It is possible that Virginia, like most states, supports the common myth that the assessed value is the same as the market value; however, this is not always true. Examples include when interior reconstruction has happened and the assessor is unaware of the improvements, or when properties in the area have not been reassessed for an extended period of time.

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

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

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

Fact: Market value is based on what a willing buyer would likely pay a willing seller for a particular house, with neither being under duress to buy or sell. Replacement value is the dollar amount required to rebuild a property in-kind.

Myth: There are certain methods that real estate appraisers use to find the opinion of value of a house, like the price per square foot.

Fact: An appraisal report is an assertion of data based on the house's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can rely on Karen A. Zirpoli - KAZ Appraisals, LLC's appraisers to be forthright in assessing this information.

Myth: In a powerful economy - when the values of properties in a given region are found to be appreciating by a particular percentage - the costs of individual homes in the vicinity can be expected to rise by that same percentage.

Fact: All increase of value is on an individual basis, found by information on relevant elements and the data of comparable homes. It doesn't matter if the economy is doing well or declining.

Myth: The property's outside is determinate of the actual worth of the house; it is unnecessary to do an interior appraisal.

Fact: Property value is concluded by a multitude of factors, including area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by inspecting the property from the outside.

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

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that ordered the appraisal. Because of the Equal Credit Opportunity Act, any consumer demanding a copy of the document must be given it by their lender.

Myth: There's no reason for consumers to even worry about what the appraisal contains so long as their lender is fine with the contents therein.

Fact: A consumer should definitely read through their document; there could be some questions or some worries with the accuracy of the inspection that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes an invaluable record for future reference, comprised of useful and often-revealing information - including 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.