Common myths about appraising

By law, an appraiser must be state-licensed to offer appraisals for federally-related transactions. The law gives you the right to receive a copy of your completed appraisal from your lending agency after it has been provided. Contact Nordquist Appraisal LLC if you have any concerns about the appraisal procedure.

Myth: The value that is ascertained by the appraiser is required to be equivalent to the market value.

Fact: It might be that Pennsylvania, like most states, validates the common myth that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Interior reconstruction that the assessor is not aware of and a dearth of reassessment on nearby homes are prime examples of why the price can vary.

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

Fact: The cost of the property does not affect the payment of the appraiser; because of this, the appraiser has no pressured interest in the opinion of value of the property. This means that he will conduct business with impartiality and objectivity regardless for whom the appraisal is conducted.

Myth: Market value will equal replacement cost.

Fact: Market value is based on what a willing buyer would likely pay a willing seller for a certain house, with neither being under duress to buy or sell. The dollar amount needed to reconstruct a home is what shows the replacement cost.

Myth: Certain formulae, such as the price per square foot, are what appraisers use to ascertain the value of a house.

Fact: An appraisal report is an assertion of data based on the property's size, location, proximity to undesirable facilities, the condition of the property and the worth of recent comparable sales. You can count on Nordquist Appraisal LLC's staff to be honest in assessing this data.

Myth: In a powerful economy - when the values of houses in a given county are found to be appreciating by a certain percentage - the costs of individual homes in the proximity can be expected to rise by that same percentage.

Fact: Any value at which an appraiser concludes in regards to a certain property is always personalized, based on certain factors pulled from the data of comparable homes and other considerations within the property itself. It makes no difference if the economy is powerful or poor.

Have other questions about appraisers, appraising or real estate in Allegheny County or Pittsburgh, PA?

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Myth: Just looking at what the house looks like on the outside gives a good idea of its cost.

Fact: There are a multitude of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. As you can see, none of these things can be found simply by inspecting the home from the exterior.

Myth: Because consumers fund appraisals when applying for loans to buy or refinance their property, they legally own their appraisal report.

Fact: The appraisal report is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the report. However, consumers must be provided with a copy of the document upon written request, due to the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal report so long as it satisfies the needs of their lending agency.

Fact: It is almost imperative for consumers to check over a copy of their appraisal report so that they can double-check the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, as it contains an incredible 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: Appraisals are ordered only to assess building values in home sales involving mortgage-lending transactions.

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

Myth: There's no need to get an appraisal if you have had a home inspection.

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. The task of a home inspector is to determine the condition of the house and its main components, then create a report on their findings.