Myth # 1:
An Appraisal And A Home Inspection Are One And The Same.
Response: Not exactly. An appraiser is concerned with the overall condition of a home and will look at the various features that are readily observable. However, don’t expect the appraiser to start pulling off electrical panels and crawling through your attic. An appraiser is there to see essentially what you see or what a perspective buyer sees. The inspection is cursory in nature and is for gaining and noting the overall features and condition of your residence. If there is an obvious leak or broken item, the appraiser will note that however the scope of the inspection does not surpass that of a routine observation.
The information gathered from a cursory inspection is for determining an opinion of value for your home. However, do not be mislead that the appraiser’s inspection is exhaustive and can be relied upon to validate whether all items are properly functioning and whether the roof or mechanical and structural systems are all sound and solid.
Appraiser’s are mainly concerned with overall condition as it plays into the formulation of an opinion of value whereas home inspectors’ sole purpose is to determine the condition of each component of your dwelling with no regard to the value but rather whether items are functional or need repair and/or replacement.
This is not the job of an appraiser and an appraiser cannot and will not be held liable for things “unseen” or not readily observable at a cursory inspection. So, if you are buying or selling a home always get a home inspection by a professional who is trained in that area alone and do not think that a cursory inspection by an appraiser will fulfill that need.
Myth #2:
All Appraisers Are Equal.
Response: Appraisers are just people. Each one with a different perspective and training background. As in any profession there are people who just do their “job” and others that consider what they do a “career” and approach it as a student who will continue to educate him/herself to provide the most reliable and accurate opinion of value possible. I have heard countless stories of real estate agents who have prepared exhaustive analysis to give to an appraiser only to have the appraiser sneer or casually stuff the data in the file and arrogantly walk away.
Appraisers (contrary to their own belief) do not know EVERYTHING. Each neighborhood has its own unique characteristics and attributes and an open and willing attitude towards other professionals in the market is the best way to approach each appraisal assignment. Arrogance leads to mistakes. We encourage every one of our appraisers to have an open and professional dialogue with all appropriate parties to have the most information available. This is not a guarantee that we will utilize all that data if it does not apply however professional courtesy and some humility in the process goes along way in establishing a well-informed opinion. If you encounter an appraiser who is rude or arrogant on the front end…well this is a huge red flag and generally a coping mechanism for a person who only sees their work as a “job” to put a value on something and move on to the next file. Be careful as all appraisers are not the same and price and speed do not solve all issues.
An appraiser should be courteous, careful, informative and communicative. There is no shame in explaining the process and the more each party knows the better they understand…hence a better the outcome.
Myth #3:
The Opinion Of Value Is Exact, Precise And Perfect!
Response: Once you receive an appraisal there will be an opinion of value provided regarding your property. However, realize that just because the appraisal may indicate your home is worth $350,000 (for instance) it does not mean that it could be worth slightly more or less based on the market conditions and perceptions of the market.
Please don’t be confused. We are not saying that it should fluctuate widely! On the contrary, the opinion of value should only vary about 5% among any other peer appraisal performed by a well-informed professional. The variation can be wider if it is a more unusual home however generally, appraisals in typical neighborhoods don’t vary among peer appraisals beyond 5-10%.
So, although an appraisal is not “perfect” to the dollar its variation should amount to very little if compared to a peer reviewed appraisal supplied by another capable professional.
Recent Comments