Appraisal myths debunked

By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-backed transactions. Also by law, you are entitled to request a copy of the completed appraisal from your lender. Contact us if you have any questions about the appraisal procedure.

Myth: Assessed value should equate to market value.

Fact: It is possible that Ohio, like most states, supports the common myth that the assessed value equals the market value; however, this is sometimes the exception rather than the rule. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby houses are perfect examples of why there might be a differential in price.

Myth: The appraised value of a house will vary depending upon if the appraisal is produced for the buyer or the seller.

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

Myth: The replacement value of the house should be is on par with the market value.

Fact: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a house without being under pressure from any outside party to purchase or sell. The dollar amount necessary to rebuild a home is what shows the replacement cost.

Myth: There are certain methods that appraisers use to find the opinion of value of a house, like the price per square foot.

Fact: Appraisers make an exhaustive analysis of all factors in consideration to the worth of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

Myth: In a robust economy - when the values of properties in a given region are found to be increasing 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 concerning a certain property is always personalized, based on certain factors pulled from the data of comparable properties and other specifications within the home itself. This is true in excellent economic times as well as poor.

Myth: You can usually see what a home is worth simply by looking at the outside.

Fact: Home worth is determined by a multitude of variables, including - but not limited to - area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the property from the outside.

Myth: Because the consumer is the person who puts up the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.

Fact: Unless a lending agency releases its interest in the document, it is legally owned by the lending company that purchased the appraisal. Home buyers must be provided with a version of the appraisal report through request as per the Equal Credit Opportunity Act.

Myth: Consumers need not be concerned with what is in their document so long as it satisfies the necessities of their lending company.

Fact: A consumer should definitely look through their report; there may be some questions or some concerns about the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal report makes an invaluable record for future reference, filled with helpful and often-revealing information - 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.