Appraisal myths & facts

It is mandated by legal agencies that an appraiser must be state-licensed to offer appraisals for federally-related home purchases in Indiana. Also by law, you have the ability to request a copy of the finished appraisal from your lending agency. Contact Reitzler Appraisal Services if you have any questions about the appraisal procedure.

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

Fact: While most states uphold the idea that assessed value is equal to estimated market value, this usually is not the case. Examples include when interior reconstruction has occurred and the assessor is unaware of the improvements, or when homes in the area have not been reassessed for an prolonged period of time.

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

Fact: The appraised value of the home does not affect the salary of the appraiser; as such, the appraiser has no personal interest in the worth 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 cost of the property should be is on par with the market value.

Fact: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under undue influence to buy or sell. The dollar amount required to reconstruct a property is what shows the replacement cost.

Myth: There are certain methods that real estate appraisers use to determine the value of a home, like the price per square foot.

Fact: An appraisal report is an amalgamation of data concluded from the property's size, location, proximity to certain facilities, the condition of the property and the worth of recent comparable sales. You can rely on Reitzler Appraisal Services's staff to be professional in assessing this data.

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

Fact: Price increase of a specific home must be concluded on a case-by-case basis, factoring in information on comparable houses and other relevant considerations. It doesn't matter if the economy is doing well or declining.

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

Fact: To find an accurate value beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and market trends. Obviously, none of these things can be derived simply by examining the property from the exterior.

Myth: Because the consumer is the person who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.

Fact: The report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the report. By the Equal Credit Opportunity Act, any consumer asking for a copy of the appraisal report must be provided with one by their lender.

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

Fact: It is a very good idea for consumers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case they need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can serve as a record for the future, since it contains an incredible amount of information - 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 vicinity.