Common Questions on Property Value and Real Estate Appraisals
Common Real Estate Appraisal Questions:
Q: What types of real estate services do you provide?
Q: What areas do you cover?
A: Classic Appraisals offers 4 convenient office locations and appraisers are available across New York, New Jersey and Connecticut. As well as serving many reports in Manhattan (New York, NY), Bronx, Queens, Brooklyn, we also serve Westchester County, Rockland County, Nassau County, Suffolk County and many others. Please see our Appraisal Coverage Areas page for a complete list of cities and counties we cover or look for coverage by zip code.
Q: How is property value determined?
Q: Will the appraised value of a property vary depending on whether the appraisal is conducted for the buyer or the seller?
Q: Should the market value approximate replacement cost?
A: The "market value" of a home is based on what a buyer will likely pay a seller for a particular property, neither party being under pressure to buy or sell. "Replacement cost" is the dollar amount required to reconstruct a property as it was.
Q: Will the assessed value equate to the market value?
A: While most states support the concept that assessed value approximates the estimated market value, this is often is not the case. For example, 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 period of time.
Q: Do Classic real estate appraisers use a formula, such as a specific price per sq. ft., to figure the value of a home?
A: Appraisers make detailed analysis of all factors pertaining to the value of the home including location, condition, size, proximity to local facilities and recent sale prices of other comparable properties in the market area.
Q: Does the consumer own their appraisal because they pay for the appraisal(s) when applying for loans to purchase or refinance real estate?
A: The appraisal is legally owned by the lender - unless the lender "releases interest" in the document. However, under the Equal Credit Opportunity Act, consumers may obtain a copy of the appraisal report from the lender who ordered the report.
Q: Are appraisers only hired to estimate real estate property values in real estate or property sales involving mortgage lending transactions?
A: Depending on qualifications and designations, appraisers can provide a variety of appraisal services, including advice for estate planning, cost/benefit analysis, dispute resolution, zoning and tax assessment, PMI removal and many others.
Q: In a good economy, when the prices of homes in a particular area are reported to be rising by certain rate, will the value of individual properties in that area be expected to appreciate by that same percentage?
A: Value appreciation of a specific property must be determined on an individual basis, factoring in the data on those comparable properties and other relevant considerations. This is true in good times as well as bad.
Q: Does a consumer need to be concerned with what is in the appraisal document as long as it satisfies the needs of their lending institution?
A: If a consumer reads a copy of their appraisal, they are able to double check the accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often revealing information, including 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.
Q: Is an appraisal is the same as a home inspection?
A: An appraisal does not serve the same purpose as a home inspection. The appraiser forms an opinion of value during the appraisal process and in the resulting report. A home inspector determines the condition of the home and all its major components and reports on these findings.
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