Appraisal myths & facts

It is mandated by the government that a real estate appraiser is required to be state-licensed to perform appraisal reports for federally-supported property transactions in Florida. Also by law, you have the ability to request a copy of the completed appraisal report from your lending agency. Contact me if you have any questions about the appraisal procedure.

Myth: Market value should be similar to the assessed value of the property.

Fact: It could be that Florida, like most states, supports the suggestion that the assessed value equates to the market value; however, this is not always true. Examples include when interior reconstruction has happened and the assessor does not know about the improvements, or when properties in the vicinity have not been reassessed for an prolonged period.

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

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

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

Fact: Without any influence from any outside parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific property. The dollar amount needed to reconstruct a property is what forms the replacement cost.

Myth: Certain methods, such as the price per square foot, are what appraisers use to arrive at the value of a property.

Fact: There are many different methods that an appraiser will use to make a detailed investigation of every factor pertaining to the house, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable houses.

Myth: As houses increase their worth by a specific percentage - in a strong economic state - the properties nearby are expected to appreciate by the same amount.

Fact: All increase of worth is on an individual basis, concluded by information on relevant considerations and the data of comparable homes. It makes no difference if the economy is robust or terrible.

Myth: The property's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.

Fact: To conclude an accurate price beyond all doubt, an appraiser must inspect the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by examining the property from the outside.

Myth: Since the consumer is the person who provides the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.

Fact: Legally, the appraisal is owned by the lending company unless the lender relinquishes their interest in the document. Under the Equal Credit Opportunity Act, any home buyer asking for a copy of the appraisal report must be provided with it by their lending company.

Myth: Home buyers need not care about what is in their appraisal so long as it satisfies the necessities of their lending group.

Fact: It is a very good idea for home buyers to go through a copy of their appraisal so that they can double-check 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, containing an incredible amount of data - 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 vicinity.