Common myths about appraising

It is mandated by law that an appraiser must be state-licensed to produce appraisal reports for federally-supported home purchases in Mississippi. You have the ability to request a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal process.

Myth: Assessed value should always be the same as to market value.

Fact: It is probable that Mississippi, like most states, supports the suggestion that the assessed value equals the market value; however, this is not always true. Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an prolonged period of time.

Myth: Depending on if the appraisal is ordered for the buyer or the seller, the cost of the home will vary.

Fact: The appraiser has no vested interest in the outcome of the report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

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

Fact: Market value is arrived at through what a willing buyer would likely pay a willing seller for a particular house, with neither being under undue influence to buy or sell. If the property were reconstructed, the dollar amount necessary to do so would be the replacement cost.

Myth: Appraisers use a calculation, such as a certain price per square foot, to come to the worth of a home.

Fact: An appraisal is an amalgamation of information concluded from the house's size, location, proximity to undesirable facilities, the condition of the property and the worth of recent comparable sales. You can count on Cooper Associates's appraisers to be ethical in assessing this data.

Myth: As homes increase their worth by a specific percentage - in a strong economic state - the homes nearby are figured to appreciate by the same amount.

Fact: Price increase of a specific house is always determined on a case-by-case basis, factoring in information on comparable houses and other relevant considerations. It doesn't matter if the economy is doing well or declining.

Myth: You can commonly tell what a property is worth simply by looking at the exterior.

Fact: To find an accurate value beyond all doubt, an appraiser must inspect the house on a variety of factors based on area, condition, improvements, amenities, and market trends. As you can see, none of these factors can be derived just by looking at the home from the outside.

Myth: Because consumers fund appraisal reports when applying for loans to buy or refinance their property, they legally own their appraisal.

Fact: Legally, the document is owned by the lending company unless the lender releases their interest in the report. However, consumers must be given a copy of the document upon written request, due to the Equal Credit Opportunity Act.

Myth: Home buyers need not be concerned with what is in their appraisal so long as it exceeds the necessities of their lending agency.

Fact: A home buyer should definitely inspect their appraisal; there will probably be some questions or some concerns with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal report can serve as a record for the future, since it contains an incredible amount of information - including, but certainly not limited to 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.