Appraisal myths & facts
It is enforced by law that a real estate appraiser needs to be state-licensed to create appraisals for federally-supported home transactions in Wisconsin. The law gives you the right to acquire a copy of your finished appraisal report from your lender 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 must be exactly the same as the market value.
Fact: It is probable that Wisconsin, like most states, validates the common myth that the assessed value is the same as the market value; however, this is not always true. Interior reconstruction that the assessor has not investigated and a lack of reassessment on nearby homes are prime examples of why this occurs.
Myth: The value of a home will change depending upon whether the appraisal is produced for the buyer or the seller.
Fact: The opinion of value of the property does not affect the payment of the appraiser; as a result, the appraiser has no pressured interest in the cost of the home. What this means is he will provide business with impartiality and objectivity regardless for whom the appraisal is provided.
Myth: Market value should equate to replacement cost.
Fact: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific home, with neither being under duress to buy or sell. The replacement cost is the dollar amount needed to rebuild a house in-kind.
Myth: Specific methods, like the price per square foot, are the methods appraisers use to arrive at the worth of a property.
Fact: An appraisal report is a collection of information concluded from the home's size, location, proximity to undesirable facilities, the condition of the property and the value of recent comparable sales. You can count on Walz Appraisal Service, LLC's appraisers to be forthright in assessing this information.
Myth: When the economy is doing well and the cost of properties are found to be rising by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.
Fact: All appreciation of price is on an individual basis, found by information on relevant conditions and the data of comparable properties. This is true in good economic times as well as bad.
Have other questions about appraisers, appraising or real estate in La Crosse County or Holmen, WI?Contact us
Myth: Just seeing what the house looks like on the outside gives an idea of its cost.
Fact: Home value is determined by a multitude of factors, including - but not limited to - location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply viewing the property from the exterior.
Myth: Considering that the consumer is the person who provides the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report is theirs.
Fact: Legally, the document is owned by the lender unless the lender relinquishes their interest in the report. Consumers must be provided with a copy of the report through request as per the Equal Credit Opportunity Act.
Myth: There's no need for home buyers to even worry about what the appraisal contains so long as their lending agency is satisfied.
Fact: It is a very good idea for home buyers to go through a copy of their report so that they can verify the accuracy of the report, in case there is a need to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of information stored in an appraisal report that can be useful to the home buyer in the future, such as 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 region.
Myth: Appraisers are hired only to estimate building values in home sales involving mortgage-lending deals.
Fact: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A property inspection serves the same purpose as an appraisal.
Fact: A home inspection has a completely different purpose than an appraisal report. The function of an appraisal report is to find an opinion of fair market value during the appraisal process and the completion of the appraisal. House inspectors will create a report that will determine the condition of the home and its major components and possible damage.