Myth: Market value should be similar to the assessed value of the property.
Reality: While most states support the concept that assessed value approximates estimated market value, this usually is not the case.
Often when interior remodeling has occurred and the assessor is not aware of the improvement or other homes in the area have not been reassessed for a good length of time, it may vary widely.
Myth: The buyer or the seller may have an influence in the cost of the property depending upon for whom the appraiser is working.
Reality: The appraiser has no vested interest in the result of the report and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the property is always in line with the market value.
Reality: The way market value is found is based on what a home buyer would be willing to pay a willing seller for a property without being under pressure from any external party to purchase or sell.
The replacement cost is the dollar amount necessary to reconstruct a house in-kind.
Myth: There are specific ways that real estate appraisers use to find the opinion of value of a property, such as the price per square foot.
Reality: An appraisal is a collection of data based on the property's size, location, proximity to specific facilities, the condition of the property and the values of recent comparable sales. You can count on Eagle Appraisals's appraisers to be forthright in assessing this data.
Myth: In a robust economy - when the values of houses in a given county are reported to be rising by a certain percentage - the values of individual properties in the vicinity can be expected to appreciate by that same percentage.
Reality: All appreciation of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable houses.
This is true in good economic times as well as bad.
Myth: Just examining what the property looks like on the outside gives a good idea of its value.
Reality: To conclude a solid value beyond all doubt, an appraiser must examine the property on a variety of factors based on location, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from simply viewing the home from the exterior.
Myth: Since you're the one coughing up the cash for the appraisal report when applying for your loan to buy or refinance real estate, you own the produced appraisal report.
Reality: The appraisal report is, in fact, legally owned by the lender - unless the lender "releases its interest" in the document.
However, home buyers have to be given a copy of the report upon written request, because of the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their document so long as it satisfies the necessities of their lending company.
Reality: A consumer should definitely read through their report; there may be some questions or some concerns about the accuracy of the report that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes an invaluable record for future reference, filled with 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: Appraisals are ordered only to assess house values in house sales involving mortgage-lending deals.
Reality: Appraisers can have many different qualifications and designations which allow them to perform a series of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: There's no reason to get an appraisal if you order a home inspection.
Reality: An appraisal report does not serve the same purpose as an inspection report.
The task of the appraiser is to form an opinion of value in the appraisal process and through producing the report.
House inspectors will create a report that will express the condition of the house and its major components and possible damage.
