Common myths about appraising

It is required by the government that a real estate appraiser needs to be state-licensed to offer appraisal reports for federally-related property purchases in Illinois. The law entitles you to get a copy of your finished report from your lending agency after it has been produced. Contact us if you have any questions about the appraisal procedure.

Myth: The value that is ascertained by the appraiser should be the same as the market value.

Fact: It is possible that Illinois, 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. Usually when interior remodeling has been done and the assessor is unaware of the improvement or properties in the Naperville have not been reassessed for quite some time, it may vary wildly.

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

Fact: There is no personal interest on the part of the appraiser in the outcome of the appraisal, therefore he will conduct his work with impartiality and independence, regardless for whom the appraisal is conducted.

Myth: Any time market value is found, it should be similar to the replacement cost of the property.

Fact: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular property. The dollar amount required to rebuild a home is what constitutes the replacement cost.

Myth: Certain formulae, like the price per square foot of the property, are what appraisers use to ascertain the value of a home.

Fact: An appraisal report is an amalgamation of information based on the house's size, location, proximity to specific facilities, the condition of the property and the price of recent comparable sales. You can rely on First Appraisal Services's appraisers to be professional in assessing this information.

Myth: When the economy is strong and the worth of houses are found to be appreciating by a certain percentage, the other properties in the proximity can be expected to rise based on that same percentage.

Fact: All appreciation of worth is on an individual basis, concluded by information on relevant considerations and the data of comparable homes. It makes no difference whether the economy is robust or on the decline.

Myth: Just examining what the house looks like on the outside gives an excellent idea of its cost.

Fact: There are a multitude of different factors that determine property value; these factors include location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply examining the property from the exterior.

Myth: Since you're the one paying for the appraisal report when applying for the loan to buy or refinance your house, you own the ordered appraisal.

Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the appraisal. However, consumers must be provided with a copy of the report upon written request, due to the Equal Credit Opportunity Act.

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

Fact: Only if consumers check out a copy of their appraisal 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. An report can serve as a record for the future, containing an incredible amount of information - including, but certainly 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 vicinity.