Appraisal myths debunked

It is mandated by law that an appraiser is required to be state-licensed to create appraisals for federally-related home sales in Oregon. The law entitles you to get a copy of your finished appraisal from your lending agency after it has been produced. Contact Willamette Valley Appraisal Professionals if you have any questions about the appraisal process.

Myth: Assessed value generally will be similar to to market value.

Fact: While most states support the concept that assessed value is equal to estimated market value, this commonly is not the case. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when houses in the area have not been reassessed for an extended period.

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

Fact: The cost of the home does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the worth of the house. Obviously, he will conduct services with impartiality and objectivity regardless for whom the appraisal is conducted.

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

Fact: The way market value is derived is based on what a buyer would likely pay a willing seller for a property without being under duress from any external group to purchase or sell. The dollar amount demanded to rebuild a house is what shows the replacement cost.

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

Fact: An appraisal is a collection of information concluded from the home's size, location, proximity to certain facilities, the condition of the property and the cost of recent comparable sales. You can rely on Willamette Valley Appraisal Professionals's staff to be professional in assessing this data.

Myth: As homes increase their worth by a specific percentage - in a robust economic state - the homes within the same neighborhood are expected to increase by the same amount.

Fact: All increase of price is on a case-by-case basis, found by information on relevant elements and the data of comparable properties. This is true in excellent economic times as well as bad.

Myth: Just looking at what the house looks like on its exterior gives an excellent idea of its worth.

Fact: There are a number of different variables that conclude the value of a home; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived simply by looking at the home from the outside.

Myth: Since the consumer is the one who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending agency that ordered the appraisal. However, home buyers must be supplied with a copy of the report upon written request, under the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even concern themselves with what the appraisal report contains so long as their lending company is satisfied.

Fact: It is a very good idea for home buyers to read a copy of their appraisal report so that they can double-check the accuracy of the report, in case there is a 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, containing an exorbitant amount of 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 vicinity.