Appraisal Myths
Myth: You generally can tell what a property is worth simply by looking at
the outside.
Reality: Property value is determined by a number of factors, including
location, condition, improvements, amenities, and market trends.
Myth: Because consumers pay for appraisals when applying for loans to
purchase or refinance real estate, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender - unless the
lender "releases its interest" in the document. However, consumers must be
given a copy of the appraisal report, upon written request, under the Equal
Credit Opportunity Act.
Myth: Consumers need not be concerned with what is in the appraisal
document so long as it satisfies the needs of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they
double-check its accuracy and question the result. Also, it makes a valuable
record for future reference, containing useful and often-revealing information
- including 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.
Myth: Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers
can and do provide a variety of services, including advice for estate planning,
dispute resolution, zoning and tax assessment review and cost/benefit
analysis.
Myth: An Appraisal is the same as a home inspection.
Reality: An Appraisal does not serve the same purpose as an inspection.
The Appraiser forms an opinion of value in the Appraisal process and
resulting report. A home inspector determines the condition of the home and
its major components and reports these findings.
Some Myths and Realities About
Real Estate Appraisals and Appraisers
Myth: Assessed value should equate to market value.
Reality: While most states support the concept that assessed value
approximate estimated market value, this often is not the case.
Examples include when interior remodeling has occurred and the
assessor is unaware of the improvements, or when properties in the
vicinity have not been reassessed for an extended period.
Myth: The appraised value of a property will vary, depending upon
whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the
appraisal and should render services with independence, objectivity
and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would
pay a willing seller for a particular property, with neither being under
pressure to buy or sell. Replacement cost is the dollar amount
required to reconstruct a property in-kind.
Myth: Appraisers use a formula, such as a specific price per square
foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining
to the value of a home including its location, condition, size, proximity to
facilities and recent sale prices of comparable properties.
Myth: In a robust economy - when the sales prices of homes in a
given area are reported to be rising by a particular percentage - the
value of individual properties in the area can be expected to appreciate
by that same percentage.
Reality: Value appreciation of a specific property must be determined
on an individualized basis, factoring in data on comparable properties
and other relevant considerations. This is true in good times as well as
bad.
Real Estate Appraisals and Appraisers
Myth: Assessed value should equate to market value.
Reality: While most states support the concept that assessed value
approximate estimated market value, this often is not the case.
Examples include when interior remodeling has occurred and the
assessor is unaware of the improvements, or when properties in the
vicinity have not been reassessed for an extended period.
Myth: The appraised value of a property will vary, depending upon
whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the
appraisal and should render services with independence, objectivity
and impartiality - no matter for whom the appraisal is conducted.
Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would
pay a willing seller for a particular property, with neither being under
pressure to buy or sell. Replacement cost is the dollar amount
required to reconstruct a property in-kind.
Myth: Appraisers use a formula, such as a specific price per square
foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining
to the value of a home including its location, condition, size, proximity to
facilities and recent sale prices of comparable properties.
Myth: In a robust economy - when the sales prices of homes in a
given area are reported to be rising by a particular percentage - the
value of individual properties in the area can be expected to appreciate
by that same percentage.
Reality: Value appreciation of a specific property must be determined
on an individualized basis, factoring in data on comparable properties
and other relevant considerations. This is true in good times as well as
bad.
| Mass Appraisals 11 Meadowview Road, Foxboro MA 02035 Phone (617)620-6061 Fax (775)587)0091 Email info@massappraisalonline.com |
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We are the best place to order a real estate appraisal from a certified real estate appraiser in the Massachusetts area. For a real estate appraisal in massachusetts or from a real estate
appraiser massachusetts or a real estate appraisal boston from a real estate appraiser boston call us. If you want to know what your property or estate is worth a real estate appraisal of
your home in MA, we will give you the best estimate of value for your home. Whether you need a land appraisal or a home appriasal to determine the value of your house in
Massachusetts we can help. Realtors don't always give you the most accurate value estimate of your property. Real estate appraisers know how to value your home and take into account
the current real estate market conditions. Mortgage companies, banks, homeowners who are in the Massachusetts area use our appraisal services, including Norfolk, Worcester, Suffolk,
Plymouth, Bristol, Hamden, Middlesex, Essex, Barnstable, Berkshire, Hampshire, and Franklin counties.
appraiser massachusetts or a real estate appraisal boston from a real estate appraiser boston call us. If you want to know what your property or estate is worth a real estate appraisal of
your home in MA, we will give you the best estimate of value for your home. Whether you need a land appraisal or a home appriasal to determine the value of your house in
Massachusetts we can help. Realtors don't always give you the most accurate value estimate of your property. Real estate appraisers know how to value your home and take into account
the current real estate market conditions. Mortgage companies, banks, homeowners who are in the Massachusetts area use our appraisal services, including Norfolk, Worcester, Suffolk,
Plymouth, Bristol, Hamden, Middlesex, Essex, Barnstable, Berkshire, Hampshire, and Franklin counties.