Myth: The value that is assessed by the appraiser must be the same as the market value.
Reality: This is not often the case; most states do support the concept that the assessed value is the same as market value, but not always.
Examples include when interior remodeling has happened and the assessor has not seen the improvements, or when houses in the vicinity have not been reassessed for an extended period of time.
Myth: The buyer or the seller may have leverage in the cost of the home depending upon for whom the appraiser is working.
Reality: The appraiser has no personal interest in the outcome of the appraisal report and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.
Myth: Any time market value is established, it should be the same as the replacement cost of the home.
Reality: Market value is arrived at through what a willing buyer would likely pay a willing seller for a certain house, with neither being under pressure to buy or sell.
If the property were reconstructed, the dollar amount necessary to do so would be the replacement cost.
Myth: There are specific methods that real estate appraisers use to show the opinion of value of a house, like the price per square foot.
Reality: An appraisal is a collection of information based on the home's size, location, proximity to undesirable facilities, the condition of the home and the values of recent comparable sales. You can depend on Quality Appraisal, LLC's staff to be honest in assessing this information.
Myth: As houses increase in value by a specific percentage - in a strong economy - the homes nearby are expected to increase by the same amount.
Reality: An increase in value of a certain home has to be determined on a case-by-case basis, factoring in data on comparable houses and other relevant considerations.
It makes no difference if the economy is robust or poor.
Myth: Just examining what the home looks like on its exterior gives a good idea of its value.
Reality: Property value is concluded by a multitude of variables, including location, condition, improvements, amenities, and market trends.
An exterior inspection definitely can't provide all of the data needed.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to purchase or refinance your house, you own the produced appraisal.
Reality: Unless a lender releases its vestment in the appraisal report, it is legally owned by the lending company that purchased the appraisal.
However, consumers must be supplied with a copy of the appraisal upon written request, because of the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the requirements of their lending company.
Reality: It is very important for home buyers to peruse a copy of their report so that they can verify the accuracy of the document, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal report makes a valuable record for future reference, containing useful and often-revealing data - 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: The only reason someone would order an appraisal is if a house needs its value estimated in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a lot of different services including - but certainly not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Reality: Appraisal reports are nothing like a home inspection report.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report.
A home inspector assesses the condition of the home and its main components and reports their findings.