Myth: Market value will be similar to the assessed value of the property.
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.
Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when houses in the area have not been reassessed for an extended time.
Myth: The value of a property will differ depending upon if the appraisal is ordered for the buyer or the seller.
Reality: There is no vested interest on the part of the appraiser in the result of the analysis, therefore he will conduct his work with impartiality and independence, no matter of for whom the appraisal is ordered.
Myth: Market value should mirror replacement cost.
Reality: The way market value is arrived at is based on what a buyer would likely pay a willing seller for a home without being under pressure from any external party to buy or sell.
Replacement cost is the dollar amount necessary to rebuild a house in-kind.
Myth: Appraisers use a formula, such as a specific price per square foot, to come to the value of a house.
Reality: An appraisal is an assertion of data based on the house's size, location, proximity to certain facilities, the condition of the home and the values of recent comparable sales. You can depend on Walker & Associates's appraisers to be honest in assessing this information.
Myth: As houses increase in value by a certain percentage - in a strong economic state - the properties within the same neighborhood are figured to increase by the same amount.
Reality: All appreciation of value is on a one-on-one basis, concluded by data on relevant elements and the data of comparable properties.
It doesn't matter if the economy is doing well or declining.
Myth: The house's outside is determinate of the actual value of the home; there is no need to do an interior appraisal.
Reality: There are a multitude of different factors that conclude the value of a house; these factors include area, condition, improvements, amenities, and market trends.
There's no real way to get all of this data from just looking at the property from the outside.
Myth: Since you're the one paying for the appraisal when applying for your loan to buy or refinance real estate, you own the provided appraisal report.
Reality: Unless a lender releases its interest in the document, it is legally owned by the lending agency that purchased the appraisal.
Consumers have to be provided with a version of the report upon written request as per the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the report contains so long as their lending institution is satisfied.
Reality: It is very important for consumers to peruse a copy of their report so that they can double-check the accuracy of the document, 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 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 area.
Myth: Appraisers are hired only to estimate building values in house sales involving mortgage-lending transactions.
Reality: Ordering an appraisal can fulfill a variety of necessities depending on the designations and certifications of the appraiser involved; appraisers can perform a great deal of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: There's no reason to get an appraisal if you get a home inspection.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The appraiser concludes on an opinion of value in the appraisal process and resulting appraisal.
A home inspector assesses the condition of the building and its main components and reports their findings.
