Common myths about appraising

It is required by law that a real estate appraiser must be state-licensed to perform appraisal reports for federally-supported property purchases in Louisiana. You have the ability to request a copy of the completed appraisal report from your lender. Contact us if you have any questions about the appraisal procedure.

Myth: Assessed value generally will be similar to to market value.

Fact: It is possible that Louisiana, like most states, supports the idea that the assessed value is no different from the market value; however, this is not often the case. Generally when interior remodeling has been done and the assessor is has not investigated the improvement or properties in the area have not been reassessed for a good length of time, it may vary wildly.

Myth: The buyer or the seller can have leverage in the cost of the property depending upon for whom the appraiser is working.

Fact: The price of the house does not affect the payment of the appraiser; due to this, the appraiser has no vested interest in the opinion of value of the property. This means that he will conduct task with impartiality and independence regardless for whom the appraisal is provided.

Myth: The replacement cost of the house will be is on par with the market value.

Fact: Market value is arrived at through what a willing buyer would be interested in paying a willing seller for a specific property, with neither being under duress to buy or sell. Replacement cost is the dollar amount needed to rebuild a house in-kind.

Myth: Specific methods, like the price per square foot, are what appraisers use to arrive at the cost of a home.

Fact: There are many numerous calculations that an appraiser will use to make a full analysis of every factor pertaining to the property, such as the size, location, condition, how close it is to undesirable facilities and the opinion of value of recently sold comparable houses.

Myth: As houses increase their worth by a specific percentage - in a robust economic state - the properties around the appreciating properties are expected to increase by the same amount.

Fact: Any worth at which an appraiser concludes in regards to a specific house is always individualized, based on certain factors derived from the information of comparable properties and other considerations within the house itself. It makes no difference whether the economy is excellent or on the decline.

Myth: The property's exterior is determinate of the actual price of the house; it is unnecessary to do an interior appraisal.

Fact: There are a number of different factors that conclude property value; these factors include area, condition, improvements, amenities, and market trends. An outside-only inspection certainly can't provide all of the data required.

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

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the appraisal. However, consumers must be given a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.

Myth: Home buyers need not worry about what is in their appraisal report so long as it satisfies the requirements of their lending company.

Fact: It is a very good idea for home buyers to read a copy of their report so that they can double-check the accuracy of the report, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a great deal of information contained in an appraisal report that could be useful to the consumer 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 proximity.