Appraisal myths & facts

It is mandated by law that an appraiser needs to be state-licensed to perform appraisals for federally-supported property transactions in Florida. You have the ability to receive a copy of the completed appraisal report from your lending agency. Contact Performance Appraisals Inc. if you have any questions about the appraisal process.

Myth: The value that is assessed by the appraiser must be equivalent to the market value.

Fact: It is probable that Florida, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not often the case. Usually when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the Ponte Vedra Beach have not been reassessed for quite some time, it may vary wildly.

Myth: The buyer or the seller often will have some pull in the value of the home depending upon for whom the appraiser is working.

Fact: The appraiser has no vested interest in the outcome of the appraisal and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: Market value will approximate replacement cost.

Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific home, with neither being under pressure to buy or sell. Replacement value is the dollar amount needed to reconstruct a property in-kind.

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

Fact: Appraisers complete a full analysis of all factors pertaining to the price of a home, including its location, condition, size, proximity to facilities and recent costs of comparable properties.

Myth: When the economy is doing well and the sales prices of homes are found to be rising by a certain percentage, the other properties in the neighborhood can be expected to increase based on that same percentage.

Fact: Any price at which an appraiser concludes concerning a particular home is always personalized, based on certain factors pulled from the data of comparable houses and other specifications within the property itself. It makes no difference if the economy is powerful or bad.

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

Fact: There are a number of different variables that conclude property value; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this data from just viewing the property from the exterior.

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

Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. Under the Equal Credit Opportunity Act, any consumer requesting a copy of the appraisal report must be given it by their lending agency.

Myth: There's no need for home buyers to even concern themselves with what the report contains so long as their lender is satisfied.

Fact: It is almost imperative for home buyers to go through a copy of their appraisal report so that they can double-check the accuracy of the report, in case they need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an appraisal that could be useful to the consumer 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 proximity.