Common myths about appraising

It is required by law that an appraiser is required to be state-licensed to offer appraisals for federally-related property purchases in West Virginia. You also have the right to request a copy of the finished appraisal from your lending agency. Contact Proficient Appraisal Services, LLC if you have any questions about the appraisal procedure.

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

Fact: It is possible that West Virginia, like most states, supports the suggestion that the assessed value equals the market value; however, this is not often the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby homes are prime examples of why there might be a differential in price.

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

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

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

Fact: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under duress to buy or sell. If the house were reconstructed, the dollar amount required to do so would make up the replacement cost.

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

Fact: An appraisal is an amalgamation of information based on the house's size, location, proximity to undesirable facilities, the condition of the house and the cost of recent comparable sales. You can depend on Proficient Appraisal Services, LLC's staff to be honest in assessing this information.

Myth: As properties appreciate by a specific percentage - in a robust economic state - the properties in proximity are expected to appreciate by the same amount.

Fact: Any value at which an appraiser concludes concerning a certain home is always individualized, based on certain factors concluded from the data of comparable homes and other considerations within the home itself. It doesn't matter if the economy is on the rise or declining.

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Myth: Just seeing what the home looks like on its exterior gives an idea of its worth.

Fact: To find an accurate worth beyond all doubt, an appraiser must assess the property on a variety of factors based on area, condition, improvements, amenities, and market trends. An external inspection certainly can't provide all of the data needed.

Myth: Considering that the consumer is the one who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal belongs to them.

Fact: Unless a lender releases its interest in the document, it is legally owned by the lending company that purchased the appraisal. Consumers must be given a copy of the document upon written request because of the Equal Credit Opportunity Act.

Myth: There's no need for consumers to even worry about what the appraisal report contains so long as their lending company is satisfied.

Fact: Only if consumers check out a copy of their appraisal 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. An report can double as a record for the future, as it contains an exorbitant amount of data - 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 proximity.

Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the cost of a house during a sales transaction involving a lending company.

Fact: Depending upon their qualifications and designations, appraisers can and will perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: You don't need to get an appraisal if you get a home inspection.

Fact: Appraisal reports are nothing like a home inspection report. The point of an appraisal is to arrive at an opinion of fair market value during the appraisal process and the completion of the appraisal. The point of a home inspector is to find the condition of the property and its major components, then write a report on these findings.