Serving Maryland and Virginia with over 16 years of residential real estate appraisal experience.
Phone 301-898-1514, Fax 301-845-6740, Email: gehlsappraisals@hughes.net
Appraisal Facts
Assumption:
The appraised value of a property will vary, depending upon whether the
appraisal is conducted for the buyer or the seller.
Fact: The appraiser has no vested interest in the outcome of the
appraisal and should render services with independence, objectivity and
impartiality
Assumption:
Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: 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.
Assumption:
Market value should approximate replacement cost.
Fact: 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.
Assumption: Assessed value should equate to market value.
Fact: 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.
Assumption:
Appraisers use a formula, such as a specific price per square foot, to
figure out the value of a home.
Fact: 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 in the subject
market area.
Assumption:
Because consumers pay for appraisals when applying for loans to purchase or
refinance real estate, they own their appraisal.
Fact: The appraisal is, in fact, legally owned by the lender - unless
the lender "releases its interest" in the document. However, consumers may
obtain a copy of the appraisal report from their lender who had ordered the
report under the Equal Credit Opportunity Act.
Assumption:
Appraisers are hired only to estimate real estate property values in
property sales involving mortgage-lending transactions.
Fact: 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, PMI
removal and cost/benefit analysis.
Assumption:
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.
Fact: 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.
Assumption:
Consumers need not be concerned with what is in the appraisal document so
long as it satisfies the needs of their lending institution.
Fact: 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.
Assumption:
An Appraisal is the same as a home inspection.
Fact: 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
Assumption:
You generally can tell what a property is worth simply by looking at the
outside.
Fact: Property value is determined by a number of factors, including
location, condition, improvements, amenities, and market trends.
Phone 301-898-1514, Fax 301-845-6740, Email gehlsappraisals@hughes.net Copyright ©2007