Common myths about appraising

It is mandated by legal agencies that an appraiser must be state-licensed to produce appraisal reports for federally-related real estate purchases in Illinois. You also have the right to demand a copy of the finished appraisal from your lender. Contact us if you have any concerns about the appraisal procedure.

Myth: Market value has to be the same as the assessed value of the property.

Fact: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always. Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an prolonged time.

Myth: Depending on if the appraisal is provided for the buyer or the seller, the appraised value of the house will vary.

Fact: The opinion of value of the property does not affect the payment of the appraiser; as such, the appraiser has no personal interest in the cost of the home. This means that he will provide business with impartiality and objectivity regardless for whom the appraisal is provided.

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

Fact: Without any pressure from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific home. The dollar amount necessary to rebuild a house is what shows the replacement cost.

Myth: Appraisers use a formula, like a specific price per square foot, to conclude the cost of a home.

Fact: An appraisal is an assertion of information based on the property's size, location, proximity to some facilities, the condition of the house and the cost of recent comparable sales. You can depend on Paul Hildebranski Appraisal Service's staff to be forthright in assessing this data.

Myth: As houses appreciate by a certain percentage - in a robust economic state - the houses around the appreciating properties are figured to appreciate by the same amount.

Fact: Worth appreciation of a specific property is always concluded on an individualized basis, factoring in information on comparable houses and other relevant considerations. It doesn't matter if the economy is doing well or declining.

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

Fact: House value is concluded by a number of factors, including location, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by inspecting the house from the exterior.

Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance your house, you own the produced appraisal report.

Fact: The document is, in fact, legally owned by the lender - unless the lender "releases its interest" in the appraisal report. Consumers must be provided with a copy of the appraisal report through request because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the requirements of their lending company.

Fact: Only if home buyers check out a copy of their report can they verify its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an report that can be useful to the home buyer in the future, such as 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.