Appraisal myths & facts

By law, an appraiser is enforced to be state-licensed to offer appraisals for federally-related purchases. The law entitles you to get a copy of your finished appraisal report from your lending agency after it has been produced. Contact Harper & Strickland, Inc. if you have any concerns about the appraisal process.

Myth: The value that is assessed by the appraiser must be equivalent to the market value.

Fact: It is probable that Texas, like most states, validates the suggestion that the assessed value is no different from the market value; however, this certainly varies based on state-to-state. At times when interior remodeling has occurred and the assessor is has not investigated the improvement or other homes in the area have not been reassessed for quite some time, it may vary wildly.

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

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

Myth: The replacement value of the home should 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 specific property, with neither being under pressure to buy or sell. The dollar amount required to reconstruct a property is what forms the replacement cost.

Myth: Appraisers use a calculation, like a certain price per square foot, to come to the value of a home.

Fact: An appraisal is an assertion of information based on the house's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can count on Harper & Strickland, Inc.'s staff to be honest in assessing this data.

Myth: When the economy is doing well and the worth of properties are reported to be appreciating by a certain percentage, the other properties in the neighborhood can be expected to rise based on that same percentage.

Fact: All appreciation of worth is on a case-by-case basis, found by information on relevant elements 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 Collin County or Fairview, TX?

Contact Harper & Strickland, Inc.

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

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

Myth: Because the consumer is the person who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. Consumers have to be given a version of the document upon written request due to the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their appraisal report so long as it meets the needs of their lending institution.

Fact: Only if consumers examine a copy of their appraisal report can they ensure its accuracy and possibly need to question the result. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes a near perfect record for future reference, containing useful and often-revealing 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 hire an appraiser unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending company.

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

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

Fact: A home inspection report serves a completely different purpose than an appraisal. The purpose of the appraiser is to find an opinion of value in the appraisal process and through producing the report. The task of a home inspector is to find the condition of the home and its major components, then provide a report on their findings.