Myth: Assessed value should be similar to market value.
Reality: While most states back the idea that assessed value approximates estimated market value, this often is not the case.
Sometimes when interior remodeling has occurred and the assessor is not aware of the improvement or other houses in the Athens have not been reassessed for a good length of time, it may vary widely.
Myth: Depending on whether the appraisal is produced for the buyer or the seller, the appraised value of the property will vary.
Reality: The appraised value of the house does not affect the pay of the appraiser; because of this, the appraiser has no preconceived interest in the value of the home. This means that he will provide services with impartiality and independence regardless of for whom the appraisal is provided.
Myth: The replacement cost of the home should be on par with the market value.
Reality: The way market value is derived is based on what a home buyer would be willing to pay a willing seller for a property without being under influence from any external group to purchase or sell.
If the home were rebuilt, the dollar amount necessary to do so would set the replacement cost.
Myth: There are certain ways that real estate appraisers use to find the opinion of value of a house, such as the price per square foot.
Reality: There are many differing calculations that an appraiser will use to make a detailed analysis of every factor pertaining to the home, such as the size, location, condition, how close it is to specific facilities and the values of recently sold comparable houses.
Myth: When the economy is strong and the sales prices of houses are reported to be rising by a certain percentage, the other homes in the area can be expected to rise based on that same percentage.
Reality: Any value an appraiser reports in regards to a particular property is always individualized, based on certain factors found from the data of comparable houses and other considerations within the property itself.
It doesn't matter if the economy is on the rise or declining.
Myth: You can usually see what a property is worth simply by looking at the exterior.
Reality: Property value is concluded by a multitude of factors, including location, condition, improvements, amenities, and market trends.
There's no real way to get all of this information from just inspecting the house from the outside.
Myth: Because the consumer is the one who puts up the capital to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report is theirs.
Reality: The appraisal report is, in fact, legally owned by the lending company - unless the lender "releases its interest" in the appraisal report.
Consumers have to be given a copy of the document through request because of the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the appraisal report so long as it meets the needs of their lending agency.
Reality: A consumer should definitely read through their document; there might be some questions or some worries about the accuracy of the appraisal report that should 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, containing useful 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 vicinity.
Myth: Appraisals are ordered only to estimate house values in home sales involving mortgage-lending transactions.
Reality: Based upon their qualifications and designations, appraisers can and will perform a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you have had a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection report.
The purpose of an appraisal report is to conclude upon an opinion of market value during the appraisal process and the completion of the report.
House inspectors will compose a report that will determine the condition of the house and its major components and possible damage.
