Myth: The value that is assessed by the appraiser will be the same as the market value.
Reality: While most states back the suggestion that assessed value approximates estimated market value, this commonly is not the case.
Interior remodeling that the assessor is unaware of and a lack of reassessment on nearby houses are exact examples of why there might be a differential in price.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the value of the house will vary.
Reality: There is no vested interest on the part of the appraiser in the outcome of the appraisal report, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is written.
Myth: Any time market value is determined, it should match the replacement cost of the house.
Reality: The way market value is found is based on what a home buyer would likely pay a willing seller for a home without being under influence from any outside group to purchase or sell.
If the property were rebuilt, the dollar amount necessary to do so would be the replacement cost.
Myth: There are certain ways that appraisers use to find the value of a house, like the price per square foot.
Reality: An appraisal is an assertion of information based on the house's size, location, proximity to undesirable facilities, the condition of the home and the values of recent comparable sales. You can depend on Main Street Appraisal Service's appraisers to be forthright in assessing this data.
Myth: When the economy is on the rise and the sales prices of houses are reported to be appreciating by a certain percentage, the other houses in the vicinity can be expected to increase based on that same percentage.
Reality: Any value an appraiser reports concerning a particular property is always individualized, based on certain factors found from the data of comparable homes and other specifications within the home itself.
It makes no difference if the economy is robust or bad.
Myth: You can generally find what a home is worth simply by looking at the outside.
Reality: To determine a conclusive value beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and current market trends.
Obviously, none of these factors can be found just by looking at the property from the outside.
Myth: Since you're the one funding for the appraisal report when applying for your loan to purchase or refinance your home, you own the produced appraisal.
Reality: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report.
Home buyers have to be provided with a version of the document upon written request due to the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the report so long as it meets the needs of their lender.
Reality: It is almost imperative for home buyers to look at a copy of their appraisal so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes a valuable record for future reference, containing helpful 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 hire an appraiser is if a property needs its value assessed in a lender sales transaction.
Reality: Ordering an appraisal can fulfill a variety of requirements depending on the designations and certifications of the appraiser involved; appraisers can provide a variety of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no need to get an appraisal if you order a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal.
The purpose of the appraiser is to arrive at an opinion of value in the appraisal process and through producing the report.
The job of a home inspector is to find the condition of the home and its major components, then create a report on their conclusions.
