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Legally, a real estate appraiser is required to be state certified to write legitimate real estate appraisals for federally-related transactions. The law gives you the right to acquire a copy of your completed report from your lender after it has been produced. Contact our professional staff if you have any questions about the appraisal process.

Cheaney Appraisal Service discusses myths and realities about real estate appraisals and appraisers

Myth: Assessed value generally will be similar to market value.
Reality: While most states back the concept that assessed value is equal to estimated market value, this often is not the case. Interior reconstruction that the assessor has not investigated and a dearth of reassessment on nearby houses are excellent examples of why this occurs.

Myth: The value of a property will vary depending upon whether the appraisal is provided for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal report and should render his task with independence, objectivity and impartiality - no matter for whom the appraisal is provided.

Myth: The replacement value of the house should be on par with the market value.
Reality: Without any influence from any different parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a particular house. The dollar amount needed to rebuild a home is what forms the replacement cost.

Myth: There are certain ways that appraisers use to determine the opinion of value of a property, such as the price per square foot.
Reality: Appraisers complete a detailed analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable houses.

Myth: As houses increase in value by a certain percentage - in a strong economy - the houses in proximity are expected to appreciate by the same amount.
Reality: All increase of value is on a case-by-case basis, concluded by data on relevant considerations and the data of comparable properties. This is true in excellent economic times as well as bad.

Myth: The property's outside is determinate of the actual value of the property; there is no need to do an interior inspection.
Reality: House value is determined by a multitude of variables, including location, condition, improvements, amenities, and market trends. As you can see, none of these variables can be derived simply by viewing the property from the outside.

Myth: Because consumers fund the appraisal when applying for loans to purchase or refinance their home, they legally own their appraisal report.
Reality: Unless a lender releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal. However, home buyers have to be given a copy of the appraisal report upon written request, through the Equal Credit Opportunity Act.

Myth: There's no reason for home buyers to even care about what the appraisal contains so long as their lending company is satisfied.
Reality: It is almost imperative for consumers to peruse a copy of their appraisal report so that they can double-check the accuracy of the document, 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 data stored in a 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.

Myth: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending institution.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a multitude 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: An appraisal is no different than a home inspection report.
Reality: A home inspection serves a completely different purpose than an appraisal. The reason behind an appraisal is to conclude upon an opinion of market value during the appraisal process and the production of the appraisal. A home inspector analyzes the condition of the building and its main components and reports these findings.

Contact Cheaney Appraisal Service if you have any other questions about appraisers, appraising or real estate in Vanderburgh, Warrick, Posey or Gibson Counties in Indiana.