Common myths about appraising

It is mandated by legal agencies that a real estate appraiser must be state-licensed to create appraisal reports for federally-supported real estate sales in Nebraska. The law entitles you to acquire a copy of your finished report from your lender after it has been provided. Contact Saxton Appraisals, Inc. if you have any questions about the appraisal procedure.

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

Fact: It could be that Nebraska, like most states, validates the idea that the assessed value is the same as the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are excellent examples of why the price can vary.

Myth: The buyer or the seller may have leverage in the cost of the house depending upon for whom the appraiser is working.

Fact: The cost of the house does not affect the payment of the appraiser; as such, the appraiser has no vested interest in the cost of the home. This means that he will render services with impartiality and independence regardless for whom the appraisal is conducted.

Myth: Market value will approximate replacement cost.

Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. If the house were reconstructed, the dollar amount needed to do so would set the replacement cost.

Myth: Appraisers use a formula, such as a certain price per square foot, to come to the cost of a house.

Fact: Appraisers make an exhaustive analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable houses.

Myth: When the economy is robust and the cost of houses are reported to be rising by a certain percentage, the other properties in the proximity can be expected to rise based on that same percentage.

Fact: Any value at which an appraiser arrives in regards to a specific home is always personalized, based on certain factors derived from the data of comparable houses and other considerations within the house itself. It doesn't matter if the economy is doing well or declining.

Myth: The home's exterior is determinate of the actual price of the home; it is unnecessary to do an interior inspection.

Fact: House worth is concluded by a multitude of variables, including location, condition, improvements, amenities, and market trends. There's no possible way to get all of this information from simply examining the property from the exterior.

Myth: Because consumers pay for the appraisal when applying for loans to buy or refinance their house, they legally own their appraisal.

Fact: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document. However, consumers have to be given a copy of the document upon written request, because of the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their appraisal document so long as it exceeds the necessities of their lending institution.

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