Appraisal myths & facts

It is enforced by law that an appraiser is required to be state-licensed to write appraisals for federally-related home sales in Louisiana. The law allows you to acquire a copy of your finished appraisal report from your lending agency after it has been produced. Contact Riverlands Appraisal LLC if you have any concerns about the appraisal procedure.

Myth: The value that is assessed by the appraiser must be equivalent to the market value.

Fact: It might be that Louisiana, like most states, supports the idea that the assessed value is the same as the market value; however, this is not always true. Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby properties are prime examples of why there might be a differential in price.

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

Fact: The appraiser has no personal interest in the outcome of the report and should conduct his task with independence, objectivity and impartiality - no matter for whom the appraisal is written.

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

Fact: The way market value is found is based on what a home buyer would likely pay a willing seller for a house without being under influence from any external group to purchase or sell. If the home were reconstructed, the dollar amount required to do so would form the replacement cost.

Myth: There are specific methods that real estate appraisers use to determine the value of a home, like the price per square foot.

Fact: Appraisers complete a detailed analysis of all factors in consideration to the value of a property, including its location, condition, size, proximity to facilities and recent sale prices of comparable homes.

Myth: When the economy is strong and the cost of houses are reported to be rising by a certain percentage, the other homes in the vicinity can be expected to rise based on that same percentage.

Fact: Price appreciation of a certain home must be concluded on an individualized basis, factoring in data on comparable homes and other relevant elements. This is true in good economic times as well as poor.

Myth: The property's exterior is determinate of the actual worth of the property; there is no need to do an interior inspection.

Fact: To find an accurate worth beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and current market trends. Obviously, none of these variables can be derived simply by looking at the house from the exterior.

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

Fact: Unless a lending agency releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. Consumers have to be supplied with a version of the report upon written request due to the Equal Credit Opportunity Act.

Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the requirements of their lending company.

Fact: A home buyer should definitely look through their appraisal; there will probably be some questions or some concerns about the accuracy of the appraisal report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is a wealth of data stored 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.