Common myths about appraising

Legally, an appraiser needs to be state certified to create legitimate appraisal reports for federally-related transactions. You also have the right to demand a copy of the completed appraisal from your lender. Contact our professional staff if you have any questions about the appraisal process.

Myth: Market value will be the same as the assessed value of the property.

Fact: It could be that Arizona, like most states, supports the idea that the assessed value equates to the market value; however, this is not always true. Interior remodeling that the assessor has not investigated and a lack of reassessment on nearby homes are perfect examples of why this occurs.

Myth: The buyer or the seller can have some pull in the cost of the house 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 appraisal, therefore he will complete his work with impartiality and independence, no matter for whom the appraisal is written.

Myth: Any time market value is found, it should equate to the replacement cost of the home.

Fact: Without any pressure from any outside parties to buy or sell, market value is what a willing buyer would pay a willing seller for a particular home. The dollar amount needed to reconstruct a house is what shows the replacement cost.

Myth: Specific formulae, like the price per square foot, are what appraisers use to ascertain the worth of a house.

Fact: An appraisal is an assertion of data concluded from the home's size, location, proximity to certain facilities, the condition of the property and the worth of recent comparable sales. You can depend on Timeline Appraisal Services, LLC's appraisers to be forthright in assessing this information.

Myth: When the economy is robust and the sales prices of homes are found to be increasing by a certain percentage, the other properties in the neighborhood can be expected to increase based on that same percentage.

Fact: Any cost at which an appraiser arrives concerning a certain property is always individualized, based on certain factors pulled from the information of comparable houses and other specifications within the house itself. It doesn't matter if the economy is doing well or declining.

Myth: Just seeing what the home looks like on the outside gives an idea of its cost.

Fact: To conclude an accurate value beyond all doubt, an appraiser must assess the house on a variety of factors based on area, condition, improvements, amenities, and current market trends. An external inspection certainly can't provide all of the information necessary.

Myth: Because consumers pay for appraisals when applying for loans to buy or refinance their home, they own their appraisal.

Fact: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that purchased the appraisal. However, home buyers must be supplied with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't matter to consumers what's in the appraisal so long as it meets the necessities of their lending company.

Fact: Only if home buyers check out a copy of their appraisal report can they verify 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 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.