Myth: Market value needs to be the same as the assessed value of the property.
Reality: While most states support the idea that assessed value is equal to estimated market value, this commonly is not the case.
There are times when interior remodeling has been done and the assessor is has not investigated the improvement or other houses in the Fenton have not been reassessed for a good length of time, it may vary widely.
Myth: The opinion of value of a home will change depending upon if the appraisal is produced for the buyer or the seller.
Reality: The opinion of value of the house does not affect the payment of the appraiser; as a result, the appraiser has no vested interest in the opinion of value of the house. What this means is he will provide services with impartiality and objectivity regardless of for whom the appraisal is conducted.
Myth: Market value will mirror replacement cost.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under pressure to buy or sell.
The replacement cost is the dollar amount necessary to rebuild a house in-kind.
Myth: Specific formulae, such as the price per square foot of the property, are the ways appraisers use to arrive at the value of a house.
Reality: An appraisal report is an amalgamation of information based on the home's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can count on Realist Appraisal Services's staff to be forthright in assessing this data.
Myth: In a strong economy - when the prices of homes in a given region are reported to be appreciating by a particular percentage - the prices of individual homes in the area can be expected to appreciate by that same percentage.
Reality: All appreciation of value is on an individual basis, concluded by information on relevant considerations and the data of comparable properties.
It makes no difference if the economy is good or bad.
Myth: You can generally tell what a home is worth simply by looking at the exterior.
Reality: To determine a solid value beyond all doubt, an appraiser must inspect the property on a variety of factors based on area, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from simply inspecting the house from the outside.
Myth: Because consumers pay for the appraisal when applying for loans to purchase or refinance their property, they legally own their appraisal report.
Reality: Legally, the appraisal report is owned by the lending agency unless the lender releases their interest in the appraisal.
Consumers have to be given a version of the report upon written request because of the Equal Credit Opportunity Act.
Myth: There's no reason for consumers to even worry about what the appraisal contains so long as their lending company is satisfied.
Reality: A home buyer should definitely look through their document; there might 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 near perfect record for future reference, containing useful 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 area.
Myth: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a home during a sales transaction involving a lender.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a variety of different services including - but definitely not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A house inspection serves the same purpose as an appraisal.
Reality: Appraisal reports have almost nothing in common with a home inspection report.
The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal.
House inspectors will create a report that will explain the condition of the property and its major components and possible damage.