Phone 303.916.7307 Fax 720.528.8542
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Phone 303.916.7307 Fax 720.528.8542
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Fiction and Fact
About
Real Estate Appraisals and Appraisers
Fiction: An Appraisal is the same as a home inspection.
Fact: An Appraisal does not have the same purpose as an inspection. The appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and all of its components and reports the findings.
Fiction: Appraisers are hired to only estimate real estate property values in sales involving mortgage-lending transactions.
Fact: Depending on the qualifications of the appraiser a variety of services can be provided, such as, zoning, tax assessment, estate planning, projected value, and trends.
Fiction: Assessed and market value are equal.
Fact: Most states support the concept that the assessed value of a property can approximate market value this is often not true. Properties may have interior remodeling, a change in overall Gross Living Area, or a reassessment of properties in the area may not have been done for an extended period of time.
Fiction: The appraised value of a property will vary depending whom the report is being conducted for.
Fact: The appraiser should have no vested interest in the outcome of the value of a property and services should be rendered impartially.
Fiction: Appraisers use a standard formula to arrive at a specific value of a home.
Fact: Appraisers make a detailed analysis of all factors pertaining to the value of a home including location, condition, size, improvements, and comparable properties.
Fiction: In a good economy when sale prices of homes in a given area are raising a certain percentage the value of all homes in the area are going to appreciate by the same percentage.
Fact: Value appreciation of a specific property is determined on an individual basis factoring in data from comparable properties and other relevant considerations. This is true in good times as well as bad times.
Fiction: You can tell the value of a property from looking at the outside only.
Fact: Property value is determined from a number of factors including, location, improvements, trends and condition.
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Created by Net Rangers, LLC |
