Appraisal myths debunked

By law, an appraiser is required to be state-licensed to offer appraisals for federally-backed purchases. You also have the right to request a copy of the finished appraisal from your lending agency. Contact our professional staff if you have any questions about the appraisal procedure.

Myth: Assessed value should always be equal to market value.

Fact: It could be that Wisconsin, like most states, supports the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby homes are prime examples of why there might be a differential in price.

Myth: The buyer or the seller may have impact in the value of the home depending upon for whom the appraiser is working.

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

Myth: Any time market value is found, it should equal the replacement cost of the home.

Fact: Without any suggestion from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a particular property. The dollar amount needed to rebuild a home is what forms the replacement cost.

Myth: There are certain methods that appraisers use to find the value of a house, such as the price per square foot.

Fact: An appraisal report is an assertion of data based on the property's size, location, proximity to specific facilities, the condition of the home and the worth of recent comparable sales. You can count on Coutts Appraisal Service's appraisers to be honest in assessing this information.

Myth: As homes increase their worth by a certain percentage - in a strong economic state - the properties nearby are figured to increase by the same amount.

Fact: Any cost at which an appraiser arrives concerning a certain house is always individualized, based on certain factors derived from the information of comparable houses and other specifications within the home itself. It makes no difference if the economy is powerful or terrible.

Myth: Just seeing what the house looks like on the outside gives a good idea of its value.

Fact: House worth is concluded by a number of variables, including area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the information required.

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

Fact: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that purchased the appraisal. Consumers must be given a version of the appraisal report through request as per the Equal Credit Opportunity Act.

Myth: There's no point for home buyers to even concern themselves with what the appraisal report contains so long as their lending agency is fine with the contents therein.

Fact: It is very important for home buyers to look at a copy of their appraisal report so that they can verify the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, as it contains an incredible amount of information - including, but certainly 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.