Appraisal myths debunked

Legally, an appraiser is required to be state certified to create legitimate real estate appraisals for federally-supported purchase. The law allows you to acquire a copy of your completed appraisal report from your lender after it has been produced. Contact Westerberg Appraisals LLC if you have any questions about the appraisal process.

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

Fact: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always. Generally when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the Napa have not been reassessed for quite some time, it may vary wildly.

Myth: The buyer or the seller may have impact in the value 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 conduct his work with impartiality and independence, regardless for whom the appraisal is conducted.

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

Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a certain home, with neither being under undue influence to buy or sell. The replacement cost is the dollar amount necessary to reconstruct a home in-kind.

Myth: Appraisers use a calculation, such as a specific price per square foot, to come to the value of a home.

Fact: Appraisers make a detailed analysis of all factors pertaining to the cost of a home, including its location, condition, size, proximity to facilities and recent values of comparable homes.

Myth: When the economy is doing well and the cost of houses are reported to be increasing by a certain percentage, the other homes in the proximity can be expected to appreciate based on that same percentage.

Fact: Any value at which an appraiser concludes in regards to a specific property is always personalized, based on certain factors pulled from the data of comparable properties and other considerations within the home itself. It doesn't matter if the economy is on the rise or declining.

Myth: Just seeing what the property looks like on its exterior gives an idea of its cost.

Fact: To find an accurate value beyond all doubt, an appraiser must inspect the property on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just viewing the house from the outside.

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

Fact: Legally, the report is owned by the lending agency unless the lender releases their interest in the document. Home buyers must be supplied with a version of the appraisal report through request because of the Equal Credit Opportunity Act.

Myth: There's no reason for home buyers to even worry about what the report contains so long as their lending institution is satisfied.

Fact: It is almost imperative for consumers to read a copy of their appraisal so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An report can serve 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 vicinity.