Appraisal myths & facts

It is required by law that a real estate appraiser must be state-licensed to offer appraisal reports for federally-related property sales in Virginia. You also have the right to acquire a copy of the completed appraisal report from your lending agency. Contact BK Appraisal Services if you have any questions about the appraisal procedure.

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

Fact: It might be that Virginia, like most states, supports the suggestion that the assessed value is the same as the market value; however, this is not often the case. Interior remodeling that the assessor has not investigated and a dearth of reassessment on nearby homes are exact examples of why this occurs.

Myth: The appraised value of a house will be different depending upon if the appraisal is produced for the buyer or the seller.

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

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

Fact: Without any influence from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific property. Replacement cost is the dollar amount necessary to reconstruct a property in-kind.

Myth: There are certain methods that appraisers use to determine the value of a property, like the price per square foot.

Fact: An appraisal is an amalgamation of data concluded from the property's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can depend on BK Appraisal Services's staff to be professional in assessing this information.

Myth: When the economy is strong and the cost of houses are found to be increasing by a certain percentage, the other homes in the area can be expected to increase based on that same percentage.

Fact: All increase of worth is on a case-by-case basis, found by data on relevant conditions and the data of comparable houses. This is true in good economic times as well as bad.

Myth: Just seeing what the home looks like on its exterior gives a good idea of its worth.

Fact: House worth is concluded by a multitude of variables, including location, condition, improvements, amenities, and market trends. An outside-only inspection obviously can't provide all of the information needed.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance real estate, they legally own their appraisal.

Fact: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that ordered the appraisal. However, consumers must be supplied with a copy of the appraisal report upon written request, because of the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the report so long as it satisfies the necessities of their lending agency.

Fact: A home buyer should definitely inspect their report; there will probably be some questions or some concerns with the accuracy of the appraisal that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of information contained in an report that should 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 area.