Legally, an appraiser is required to be state certified to write substantiated appraisal reports for federally-related transactions. Also by law, you are entitled to request a copy of the completed appraisal report from your lending agency. Contact Veritech Appraisal if you have any questions about the appraisal process.

Veritech Appraisal discusses myths and realities about real estate appraisals and appraisers

Myth: Market value must be similar to the assessed value of the property.
Reality: It might be that Michigan, like most states, supports the common myth that the assessed value equals the market value; however, this certainly varies based on state-to-state. There are times when interior remodeling has been done and the assessor is unaware of the improvement or properties in the Traverse City have not been reassessed for a good length of time, it may vary widely.

Myth: The appraised value of a home will change depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The value of the home does not affect the pay of the appraiser; because of this, the appraiser has no pressured interest in the price of the home. This means that he will provide job with impartiality and independence regardless of for whom the appraisal is produced.

Myth: Market value will equate to replacement cost.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular house, with neither being under pressure to buy or sell. The dollar amount necessary to reconstruct a home is what shows the replacement cost.

Myth: Specific formulae, such as the price per square foot, are the ways appraisers use to ascertain the value of a home.
Reality: An appraisal report is an assertion of information concluded from the property's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can depend on Veritech Appraisal's appraisers to be honest in assessing this information.

Myth: In a robust economy - when the prices of houses in a given area are reported to be appreciating by a certain percentage - the values of individual homes in the area can be expected to increase by that same percentage.
Reality: An increase in value of a specific home must be concluded on an individualized basis, factoring in information on comparable houses and other relevant specifications within the house itself. This is true in good economic times as well as poor.

Myth: You can usually tell what a home is worth simply by looking at the outside.
Reality: To determine a genuine value beyond all doubt, an appraiser must assess the house on a variety of factors based on location, condition, improvements, amenities, and market trends. Obviously, none of these variables can be found simply by looking at the house from the exterior.

Myth: Since you're the one paying for the appraisal when applying for your loan to purchase or refinance your home, you own the ordered appraisal report.
Reality: Unless a lender releases its interest in the report, it is legally owned by the lending company that purchased the appraisal. Home buyers have to be supplied with a version of the report through request as per the Equal Credit Opportunity Act.

Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the necessities of their lending company.
Reality: It is almost imperative for home buyers to look at a copy of their report so that they can double-check the accuracy of the document, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make. An appraisal can double as a record for the future, since it contains a great deal of 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 vicinity.

Myth: The only reason someone would hire an appraiser is if a house needs its value estimated in a lender sales transaction.
Reality: Based upon their qualifications and designations, appraisers can and will provide a series of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: You don't need to get an appraisal if you order a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection. The function of an appraisal is to arrive at an opinion of market value during the appraisal process and the completion of the appraisal. The point of a home inspector is to assess the condition of the home and its main components, then compose a report on these inspection.

Contact us if you have any other questions about appraisers, appraising or real estate in Grand Traverse or Traverse City, Michigan.