Appraisal myths & facts

Legally, a real estate appraiser must be state certified to produce substantiated real estate appraisals for federally-supported purchase. You are also entitled by law to receive a copy of the completed report from your lender. Contact us if you have any concerns about the appraisal process.

Myth: The value that is assessed by the appraiser will be the same as the market value.

Fact: It is probable that Oklahoma, like most states, validates the common myth that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Usually when interior remodeling has been done and the assessor is not aware of the improvement or other houses in the area have not been reassessed for quite a while, it may vary wildly.

Myth: The value of a home will differ depending upon whether the appraisal is produced for the buyer or the seller.

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

Myth: The replacement cost of the property will 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 home, with neither being under duress to buy or sell. If the house were rebuilt, the dollar amount necessary to do so would form the replacement cost.

Myth: There are specific methods that appraisers use to find the opinion of value of a property, such as the price per square foot.

Fact: An appraisal is an amalgamation of information based on the home's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can depend on Crowe Appraisals's appraisers to be honest in assessing this information.

Myth: As houses increase their worth by a specific percentage - in a strong economy - the properties within the same neighborhood are expected to appreciate by the same amount.

Fact: All increase of worth is on a case-by-case basis, found by data on relevant elements and the data of comparable homes. This is true in strong economic times as well as poor.

Have other questions about appraisers, appraising or real estate in Oklahoma County or Oklahoma City, OK?

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

Fact: To conclude an accurate worth beyond all doubt, an appraiser must examine the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. An outside-only inspection certainly can't provide all of the data needed.

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

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "relinquishes its interest" in the appraisal. Consumers have to be supplied with a version of the report upon written request because of the Equal Credit Opportunity Act.

Myth: Consumers need not worry about what is in their appraisal so long as it satisfies the necessities of their lending agency.

Fact: A consumer should definitely look through their report; there may be some questions or some concerns about the accuracy of the inspection that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an report that will probably be useful to the home buyer 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 vicinity.

Myth: Appraisals are ordered only to assess real estate property values in house sales involving mortgage-lending transactions.

Fact: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.

Myth: A house inspection serves the same purpose as an appraisal.

Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser decides upon an opinion of value in the appraisal process and resulting document. House inspectors will write a report that will express the condition of the house and its major components and possible damage.