Appraisal myths debunked

It is required by law that an appraiser is required to be state-licensed to write appraisals for federally-supported home transactions in Oklahoma. Also by law, you are allowed to request a copy of the completed appraisal from your lending agency. Contact our professional staff if you have any questions about the appraisal process.

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

Fact: It is probable that Oklahoma, like most states, supports the idea that the assessed value equals the market value; however, this is not always true. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the area have not been reassessed for an extended time.

Myth: The value of a home will differ depending upon whether the appraisal is provided 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, no matter for whom the appraisal is written.

Myth: Market value will be the same as replacement cost.

Fact: Without any pressure from any outside parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific property. The dollar amount necessary to reconstruct a property is what constitutes the replacement cost.

Myth: Appraisers use a calculation, like a specific price per square foot, to arrive at the value of a house.

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

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

Fact: Any price at which an appraiser concludes concerning a particular house is always personalized, based on certain factors found from the data of comparable properties and other considerations within the home itself. It makes no difference if the economy is powerful or on the decline.

Myth: The property's exterior is determinate of the actual price of the property; it is unnecessary to do an interior inspection.

Fact: There are a number of different factors that show property value; these factors include area, condition, improvements, amenities, and market trends. An exterior inspection definitely can't provide all of the data required.

Myth: Since you're the one coughing up the cash for the appraisal when applying for the loan to buy or refinance your home, you own the produced appraisal.

Fact: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document. However, consumers must be given a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.

Myth: There's no reason for consumers to even concern themselves with what the appraisal contains so long as their lending company is fine with the contents therein.

Fact: A home buyer should definitely inspect their report; there might be some questions or some concerns about the accuracy of the appraisal that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, containing helpful and often-revealing data - including, but 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.