Appraisal myths & facts

Legally, an appraiser needs to be state certified to write substantiated real estate appraisals for federally-related sales. The law allows you to receive a copy of your completed appraisal from your lending agency after it has been provided. Contact our professional staff if you have any questions about the appraisal procedure.

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

Fact: While most states back the suggestion that assessed value is equal to estimated market value, this commonly is not the case. Often when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Omaha have not been reassessed for years or more, it may vary wildly.

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

Fact: The appraised value of the home does not affect the salary of the appraiser; due to this, the appraiser has no preconceived interest in the opinion of value of the property. This means that he will complete his task with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: Market value should equal replacement cost.

Fact: Market value is derived from what a willing buyer would likely pay a willing seller for a particular home, with neither being under undue influence to buy or sell. The dollar amount needed to reconstruct a property is what forms the replacement cost.

Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to come to the cost of a house.

Fact: An appraisal is an assertion of data based on the home's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can rely on Saxton Appraisals, Inc.'s appraisers to be professional in assessing this information.

Myth: In a powerful economy - when the worth of houses in a given area are found to be increasing by a certain percentage - the values of individual properties in the area can be expected to increase by that same percentage.

Fact: Cost increase of a specific property must be concluded on a case-by-case basis, factoring in information on comparable properties and other relevant specifications within the house itself. It doesn't matter if the economy is doing well or declining.

Myth: You can commonly see what a home is worth simply by looking at the outside.

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

Myth: Since you're the one providing the money for the appraisal when applying for your loan to buy or refinance real estate, you own the produced appraisal.

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

Myth: Home buyers need not be concerned with what is in their appraisal document so long as it satisfies the needs of their lending group.

Fact: A home buyer should definitely inspect their appraisal report; there may be some questions or some concerns about the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, containing useful and often-revealing 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 area.