Myth: The value that is assessed by the appraiser is required to be the same as the market value.
Reality: While most states uphold the suggestion that assessed value is the same as estimated market value, this commonly is not the case.
There are times when interior remodeling has occurred and the assessor is has not investigated the improvement or properties in the neighborhood have not been reassessed for quite a while, it may vary widely.
Myth: Depending on whether the appraisal is provided for the buyer or the seller, the appraised value of the home will vary.
Reality: There is no real interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, regardless of for whom the appraisal is ordered.
Myth: Market value should equate to replacement cost.
Reality: The way market value is arrived at is based on what a home buyer would be willing to pay a willing seller for a house without being under duress from any outside group to purchase or sell.
If the house were rebuilt, the dollar amount necessary to do so would set the replacement cost.
Myth: Certain methods, such as the price per square foot of the property, are what appraisers use to come to the value of a property.
Reality: An appraisal report is an assertion of information concluded from the home's size, location, proximity to some facilities, the condition of the home and the values of recent comparable sales. You can count on A.C. Read Appraisal Service's staff to be forthright in assessing this information.
Myth: In a strong economy - when the sales prices of properties in a given area are reported to be rising by a particular percentage - the prices of individual homes in the area can be expected to appreciate by that same percentage.
Reality: Any value an appraiser reports in regards to a certain property is always personalized, based on certain factors derived from the data of comparable homes and other specifications within the property itself.
It makes no difference whether the economy is powerful or terrible.
Myth: Just examining what the house looks like on the outside gives a good idea of its value.
Reality: Property value is concluded by a number of variables, including - but not limited to - area, condition, improvements, amenities, and market trends.
An exterior inspection certainly can't provide all of the data needed.
Myth: Because consumers fund appraisal reports when applying for loans to purchase or refinance their property, they own their appraisal.
Reality: Legally, the appraisal is owned by the lending company unless the lender releases their interest in the appraisal.
By the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be given it by their lending agency.
Myth: There's no need for consumers to even concern themselves with what the appraisal contains so long as their lending agency is fine with the contents therein.
Reality: It is almost imperative for consumers to read a copy of their appraisal so that they can double-check the accuracy of the document, in case there is a need to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal can double as a record for the future, containing an incredible amount of 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: The only reason someone would hire an appraiser is if a house needs its value assessed in a lender-based sales transaction.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series 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 home inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The task of the appraiser is to form an opinion of value in the appraisal process and through writing the report.
The point of a home inspector is to approximate the condition of the property and its main components, then create a report on these findings.