Common myths about appraising

It is required by the government that an appraiser needs to be state-licensed to perform appraisals for federally-supported home sales in Nebraska. Also by law, you are entitled to receive a copy of the finished appraisal from your lending agency. Contact RTD Appraisals, LLC if you have any questions about the appraisal procedure.

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

Fact: It is possible that Nebraska, like most states, supports the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state. Examples include when interior remodeling has occurred and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged period of time.

Myth: The buyer or the seller can have leverage in the value of the property depending upon for whom the appraiser is working.

Fact: There is no personal interest on the part of the appraiser in the result of the report, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is ordered.

Myth: Any time market value is found, it should be similar to the replacement cost of the house.

Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a specific home. If the home were reconstructed, the dollar amount required to do so would make up the replacement cost.

Myth: Certain formulae, such as the price per square foot of the property, are the ways appraisers use to arrive at the value of a house.

Fact: There are many numerous formulae that an appraiser will use to make an in-depth analysis of every factor in consideration of the property, such as the size, location, condition, how close it is to specific facilities and the opinion of value of recently sold comparable houses.

Myth: As homes increase their worth by a specific percentage - in a robust economic state - the homes in proximity are figured to increase by the same amount.

Fact: Any worth at which an appraiser arrives in regards to a specific property is always personalized, based on certain factors derived from the data of comparable homes and other specifications within the house itself. It makes no difference whether the economy is excellent or bad.

Myth: The house's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.

Fact: House worth is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be found simply by viewing the home from the exterior.

Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance your home, you own the produced appraisal.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal report. By the Equal Credit Opportunity Act, any home buyer demanding a copy of the report must be given one by their lending agency.

Myth: It doesn't concern consumers what's in the report so long as it satisfies the necessities of their lending company.

Fact: Only if home buyers examine a copy of their appraisal can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal 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 vicinity.