Myth: The value that is ascertained by the appraiser should be equivalent to the market value.
Reality: This is not often the case; most states do support the suggestion that the assessed value is the same as market value, but not always.
Usually when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the neighborhood have not been reassessed for quite a while, it may vary widely.
Myth: The buyer or the seller may have some pull in the value of the house depending upon for whom the appraiser is working.
Reality: The value of the house does not affect the pay of the appraiser; as a result, the appraiser has no personal interest in the opinion of value of the home. This means that he will provide task with impartiality and objectivity regardless of for whom the appraisal is created.
Myth: Any time market value is determined, it should equal the replacement cost of the property.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a specific house, with neither being under pressure to buy or sell.
The dollar amount required to reconstruct a property is what shows the replacement cost.
Myth: Specific formulae, such as the price per square foot of the property, are the ways appraisers use to come to the value of a property.
Reality: An appraisal is an assertion of data concluded from the house's size, location, proximity to certain facilities, the condition of the house and the values of recent comparable sales. You can depend on Appraisal Associates of North Georgia's appraisers to be ethical in assessing this data.
Myth: When the economy is strong and the sales prices of homes are found to be increasing by a certain percentage, the other homes in the neighborhood can be expected to increase based on that same percentage.
Reality: Any value an appraiser reports in regards to a particular home is always personalized, based on certain factors concluded from the information of comparable properties and other specifications within the home itself.
This is true in robust economic times as well as poor.
Myth: Just examining what the house looks like on the outside gives an idea of its value.
Reality: Property value is determined by a multitude of variables, including - but not limited to - location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the data required.
Myth: Since you're the one paying for the appraisal when applying for the loan to buy or refinance your home, you own the produced appraisal report.
Reality: Unless a lender releases its vestment in the document, it is legally owned by the lending agency that ordered the appraisal.
By the Equal Credit Opportunity Act, any consumer asking for a copy of the report must be provided with one by their lender.
Myth: Consumers need not care about what is in their document so long as it satisfies the requirements of their lending company.
Reality: It is almost imperative for home buyers to read a copy of their appraisal so that they can double-check the accuracy of the document, in case they need 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 near perfect record for future reference, containing helpful and often-revealing data - including 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: There is no reason to hire an appraiser unless you are trying to get an assessment of the value of a house during a sales transaction involving a lending agency.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a lot of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: You don't have to get an appraisal if you order a home inspection.
Reality: A home inspection has a completely different purpose than an appraisal report.
The appraiser decides upon an opinion of value in the appraisal process and resulting report.
A home inspector determines the condition of the building and its major components and reports their findings.
