Appraisal myths debunked
It is required by the government that an appraiser must be state-licensed to perform appraisals for federally-supported home purchases in South Carolina. You are also entitled by law to acquire a copy of the completed appraisal report from your lending agency. Contact Shepard Appraisal Group, LLC if you have any questions about the appraisal process.
Myth: Market value will always be equivocal to the assessed value of the property.
Fact: It is probable that South Carolina, like most states, validates the common myth that the assessed value is no different from the market value; however, this is sometimes the exception rather than the rule. There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or other houses in the area have not been reassessed for a good length of time, it may vary wildly.
Myth: The buyer or the seller can have some pull in the value of the property depending upon for whom the appraiser is working.
Fact: There is no personal interest on the part of the appraiser in the result of the analysis, therefore he will complete his work with impartiality and independence, despite for whom the appraisal is conducted.
Myth: Market value should approximate replacement cost.
Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a property without being under pressure from any external group to buy or sell. Replacement value is the dollar amount needed to rebuild a home in-kind.
Myth: Appraisers use a calculation, such as a specific price per square foot, to arrive at the worth of a property.
Fact: An appraisal is an assertion of data based on the property's size, location, proximity to undesirable facilities, the condition of the home and the worth of recent comparable sales. You can rely on Shepard Appraisal Group, LLC's appraisers to be ethical in assessing this information.
Myth: As homes appreciate by a certain percentage - in a strong economic state - the houses within the same neighborhood are figured to increase by the same amount.
Fact: All increase of value is on a one-on-one basis, found by information on relevant considerations and the data of comparable houses. It doesn't matter if the economy is doing well or declining.
Have other questions about appraisers, appraising or real estate in Beaufort County or Beaufort, SC?Contact Shepard Appraisal Group, LLC
Myth: Just seeing what the home looks like on the outside gives an excellent idea of its cost.
Fact: There are a number of different variables that conclude the value of a house; these factors include location, condition, improvements, amenities, and market trends. An exterior inspection obviously can't provide all of the information required.
Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their house, they own their appraisal report.
Fact: Unless a lending agency releases its interest in the appraisal report, it is legally owned by the lending agency that purchased the appraisal. However, consumers must be provided with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even care about what the appraisal contains so long as their lender is satisfied.
Fact: It is almost imperative for consumers to check over a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an excellent record for future reference, comprised of 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 area.
Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a property during a sales transaction involving a lending company.
Fact: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you order a home inspection.
Fact: An appraisal report does not fulfill the same purpose as an inspection. The job of the appraiser is to form an opinion of value in the appraisal process and through producing the report. The purpose of a home inspector is to assess the condition of the house and its major components, then produce a report on their inspection.