It is required by law that a real estate appraiser be state-licensed to produce appraisal reports for federally-related transactions in Alaska. You also have the right to request a copy of the finished appraisal report from your lending agency. Contact us if you have any concerns about the appraisal process.

Anchorage Appraisal Service, LLC 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 could be that Alaska, like most states, supports the idea that the assessed value equates to the market value; however, this certainly varies based on state-to-state. Sometimes when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Anchorage have not been reassessed for a good length of time, it may vary widely.

Myth: The opinion of value of a home will vary depending upon if the appraisal is ordered for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the report and should complete services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Myth: The replacement value of the home will be on par with the market value.
Reality: Without any suggestion from any external parties to purchase or sell, market value is what a willing buyer would pay a willing seller for a specific house. Replacement value is the dollar amount required to reconstruct a home in-kind.

Myth: Specific methods, such as the price per square foot of the property, are what appraisers use to ascertain the value of a house.
Reality: Appraisers make an exhaustive analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable properties.

Myth: As houses appreciate by a specific percentage - in a strong economy - the homes within the same neighborhood are figured to appreciate by the same amount.
Reality: The appreciation of a certain house must be determined on a case-by-case basis, factoring in data on comparable houses and other relevant elements. This is true in good economic times as well as poor.

Myth: The home's outside is determinate of the actual value of the home; it is unnecessary to do an interior appraisal.
Reality: There are a number of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends. There's no real way to get all of this information from just examining the house from the outside.

Myth: Since you're the one coughing up the cash for the appraisal when applying for your loan to buy or refinance your home, you own the produced appraisal report.
Reality: The appraisal is, in fact, legally owned by the lending company - unless the lender "relinquishes its interest" in the appraisal. Due the Equal Credit Opportunity Act, any home buyer demanding a copy of the document must be provided with one by their lending agency.

Myth: Consumers need not care about what is in their appraisal document so long as it exceeds the needs of their lending group.
Reality: A consumer should definitely read through their document; there may be some questions or some concerns with the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the report makes a valuable record for future reference, comprised of helpful and often-revealing information - 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 proximity.

Myth: There is no reason to order an appraisal unless you are trying to get an estimate of the value of a home during a sales transaction involving a lending agency.
Reality: Depending upon their qualifications and designations, appraisers can and may perform a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Myth: A property inspection serves the same purpose as an appraisal.
Reality: A home inspection serves a completely different purpose than an appraisal. An appraiser concludes on an opinion of value in the appraisal process and resulting document. House inspectors will compose a report that will explain the condition of the home and its major components and possible damage.

Contact our professional staff if you have any other questions about appraisers, appraising or real estate in Anchorage or Anchorage, Alaska.


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