 |
|
|
|
5185 Dungannon Circle NW
North Canton, OH 44720
phone: 330-494-3444
fax: 330-499-4646
e-mail: hottleco@neo.rr.com
http://www.hottleco.com
©2004 Hottle and Co.
|
|
|
|
|
|
Buyer/Seller FAQ
|
After my property is appraised by my lender, how can I be sure that it was accurately evaluated?
That depends and it should be acknowledged that there are alternative methods used
to value real property. A thorough appraisal prepared by a qualified and experienced
state certified appraiser is still the best and most accurate measure of your
property's value, however, some valuation methods do not use an appraiser at all.
Requesting a copy of your appraisal from your lender is a good first step because
you need to know if an appraisal was actually performed on your property and what
buildings and parcels were considered in value. Did you receive, read and sign a
"notice to mortgage loan applicant: appraisal alternative" statement that authorizes
your lender to use an evaluation method that is not an appraisal? It is possible that
your "appraisal" is actually the market value on the tax card (public record) or that
your property valuation was derived from a mathematical formula. If you own more than
one parcel, it is possible that only the residence and buildings on the house lot
were evaluated. Extra lots and acreage may have been excluded based on your lender's
individual criteria. If you received a copy of your appraisal under fair credit
guidelines, read it thoroughly including the limiting conditions section. Was the
appraisal prepared by an appraiser experienced in evaluating your property type in
your market area? Are there factual discrepancies in the report that affected the
final value estimate? Do the comparable sales used in the report appear reasonable
and appropriate for your property? Questions or concerns about the results of your
appraisal should be addressed to your lender because the appraiser cannot respond
to you directly when you are not the client named in the report. Remember, if the
appraisal was prepared for a lender as the identified client, the lender and its
secondary market participants (if any) may rely upon its conclusions. Anyone else
reading the report should not rely on the results unless specifically identified in
the limiting conditions.
back
|
|
|
