Common myths about appraising

It is enforced by legal agencies that an appraiser needs to be state-licensed to produce appraisals for federally-supported property purchases in Wisconsin. You also have the right to acquire a copy of the finished appraisal from your lending agency. Contact A & B Tax Service if you have any questions about the appraisal process.

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

Fact: While most states back the idea that assessed value approximates estimated market value, this usually is not the case. At times when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Sturtevant have not been reassessed for quite a while, it may vary wildly.

Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the house will vary.

Fact: The price of the house does not affect the payment of the appraiser; because of this, the appraiser has no personal interest in the opinion of value of the home. What this means is he will conduct task with impartiality and independence regardless for whom the appraisal is provided.

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

Fact: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a home without being under pressure from any external party to buy or sell. The dollar amount required to reconstruct a house is what forms the replacement cost.

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

Fact: An appraisal report is a collection of information based on the house's size, location, proximity to certain facilities, the condition of the house and the price of recent comparable sales. You can count on A & B Tax Service's staff to be professional in assessing this data.

Myth: In a powerful economy - when the sales prices of properties in a given county are found to be rising by a particular percentage - the prices of individual properties in the area can be expected to appreciate by that same percentage.

Fact: All increase of value is on an individual basis, found by information on relevant conditions and the data of comparable homes. This is true in good economic times as well as poor.

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

Fact: Home value is determined by a number of factors, including location, condition, improvements, amenities, and market trends. There's no real way to get all of this information from simply looking at the house from the exterior.

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

Fact: Legally, the document is owned by the lender unless the lender relinquishes their interest in the document. Home buyers must be provided with a copy of the appraisal report upon written request due to the Equal Credit Opportunity Act.

Myth: There's no point for home buyers to even care about what the appraisal report contains so long as their lending institution is fine with the contents therein.

Fact: It is almost imperative for consumers to check over a copy of their appraisal so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a near perfect record for future reference, comprised of useful and often-revealing data - including 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.