Myth: Assessed value should be the same as market value.
Reality: While most states back the concept that assessed value approximates estimated market value, this commonly is not the case.
Generally when interior remodeling has been done and the assessor is not aware of the improvement or properties in the Charlotte have not been reassessed for a good length of time, it may vary widely.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the cost of the property will vary.
Reality: There is no personal interest on the part of the appraiser in the result of the report, therefore he will conduct his work with impartiality and independence, despite of for whom the appraisal is created.
Myth: The replacement cost of the house will be on par with the market value.
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 home without being under duress from any external group to buy or sell.
If the home were reconstructed, the dollar amount needed to do so would be the replacement cost.
Myth: Appraisers use a formula, like a specific price per square foot, to arrive at the value of a property.
Reality: Appraisers make a detailed analysis of all factors in consideration to the value of a house, including its location, condition, size, proximity to facilities and recent values of comparable properties.
Myth: In a strong economy - when the values of homes in a given county are reported to be appreciating by a particular percentage - the values of individual homes in the area can be expected to increase by that same percentage.
Reality: An increase in value of a certain house has to be concluded on an individualized basis, factoring in information on comparable homes and other relevant elements.
This is true in robust economic times as well as bad.
Myth: Just examining what the home looks like on its exterior gives an excellent idea of its value.
Reality: There are a number of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends.
As you can see, none of these factors can be derived just by looking at the house 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 your house, you own the produced appraisal.
Reality: The report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the document.
Home buyers have to be supplied with a version of the report through request because of the Equal Credit Opportunity Act.
Myth: It doesn't concern consumers what's in the report so long as it satisfies the necessities of their lending company.
Reality: It is a very good idea for consumers to read a copy of their appraisal report so that they can verify the accuracy of the report, in case it's required to question its veracity. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal report can serve as a record for the future, containing an exorbitant 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 vicinity.
Myth: Appraisals are ordered only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Appraisers can have many different qualifications and designations which allow them to provide a multitude 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: You don't need to get an appraisal if you have had a home inspection.
Reality: A home inspection report serves a completely different purpose than an appraisal report.
The appraiser finds an opinion of value in the appraisal process and resulting document.
The task of a home inspector is to find the condition of the home and its main components, then provide a report on these conclusions.
