Legally, a real estate appraiser must be state certified to write legitimate real estate appraisals for federally-related transactions. You have the ability to demand a copy of the finished appraisal report from your lender. Contact our professional staff if you have any concerns about the appraisal procedure.

Robert L Ripp, SRA discusses myths and realities about real estate appraisals and appraisers

Myth: The value that is ascertained by the appraiser should be exactly the same as the market value.
Reality: It is probable that Colorado, like most states, validates the suggestion that the assessed value equates to the market value; however, this is not often the case. There are times when interior remodeling has occurred and the assessor is unaware of the improvement or other homes in the Fort Collins have not been reassessed for years or more, it may vary widely.

Myth: Depending on if the appraisal is done for the buyer or the seller, the appraised value of the property will vary.
Reality: The price of the property does not affect the salary of the appraiser; because of this, the appraiser has no vested interest in the price of the property. This means that he will render services with impartiality and objectivity regardless of for whom the appraisal is created.

Myth: Any time market value is determined, it should match the replacement cost of the house.
Reality: The way market value is derived is based on what a home buyer would likely pay a willing seller for a property without being under influence from any external group to purchase or sell. The dollar amount required to reconstruct a home is what forms the replacement cost.

Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to determine the value of a property.
Reality: Appraisers make a full analysis of all factors pertaining to the value of a house, including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Myth: As homes increase in value by a certain percentage - in a robust economic state - the homes within the same neighborhood are figured to appreciate by the same amount.
Reality: Any value an appraiser reports in regards to a particular home is always personalized, based on certain factors derived from the information of comparable homes and other considerations within the home itself. It doesn't matter if the economy is on the rise or declining.

Myth: The home's exterior is determinate of the expected price of the property; there is no need to do an interior inspection.
Reality: There are a multitude of different factors that show property value; these factors include location, condition, improvements, amenities, and market trends. There's no possible way to get all of this data from just inspecting the home from the outside.

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

Myth: Home buyers need not worry about what is in their document so long as it meets the requirements of their lending institution.
Reality: A consumer should definitely read through their report; there might be some questions or some concerns about the accuracy of the appraisal that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. There is an incredible amount of data contained in a report that will probably 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 area.

Myth: Appraisals are ordered only to estimate house values in property sales involving mortgage-lending deals.
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: An appraisal report is the same as a home inspection.
Reality: An appraisal report does not serve the same purpose as an inspection report. An appraiser forms an opinion of value in the appraisal process and resulting appraisal report. A home inspector assesses the condition of the home and its major components and reports their findings.

Contact our professional staff if you have any other questions about appraisers, appraising or real estate in Larimer or Fort Collins, Colorado.