Myth: The value that is ascertained by the appraiser will be the same as the market value.
Reality: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always.
Examples include when interior reconstruction has happened and the assessor has not seen the improvements, or when homes in the area have not been reassessed for an prolonged time.
Myth: Depending on if the appraisal is produced for the buyer or the seller, the appraised value of the house will vary.
Reality: The cost of the house does not affect the payment of the appraiser; because of this, the appraiser has no vested interest in the price of the home. This means that he will complete his business with impartiality and independence regardless of for whom the appraisal is provided.
Myth: The replacement cost of the property is always in line with the market value.
Reality: Without any influence from any outside parties to purchase or sell, market value is what a willing buyer would pay an interested seller for a specific property.
If the house were reconstructed, the dollar amount necessary to do so would form the replacement cost.
Myth: There are certain ways that real estate appraisers use to determine the opinion of value of a property, like the price per square foot.
Reality: An appraisal is an assertion of data concluded from the house's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can count on The Welter Appraisal Group's staff to be forthright in assessing this data.
Myth: When the economy is doing well and the sales prices of properties are reported to be appreciating by a certain percentage, the other properties in the vicinity can be expected to rise based on that same percentage.
Reality: Any value an appraiser reports in regards to a certain house is always personalized, based on certain factors found from the data of comparable homes and other considerations within the property itself.
It doesn't matter if the economy is on the rise or declining.
Myth: Just examining what the property looks like on the outside gives an idea of its value.
Reality: To find a genuine value beyond all doubt, an appraiser must examine the property on a variety of factors based on area, condition, improvements, amenities, and current market trends.
An external inspection certainly can't provide all of the data needed.
Myth: Since you're the one paying for the appraisal when applying for the loan to purchase or refinance your house, you own the ordered appraisal report.
Reality: Unless a lending agency releases its vestment in the appraisal report, it is legally owned by the lending agency that purchased the appraisal.
Consumers have to be provided with a copy of the report through request because of the Equal Credit Opportunity Act.
Myth: Home buyers need not worry about what is in their appraisal so long as it meets the needs of their lending company.
Reality: A home buyer should definitely inspect their appraisal report; there will probably be some questions or some concerns about the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal report makes a valuable record for future reference, containing useful and often-revealing 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 proximity.
Myth: Appraisals are ordered only to assess building values in house sales involving mortgage-lending transactions.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but certainly 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 get a home inspection.
Reality: A home inspection report has a completely different purpose than an appraisal.
The task of the appraiser is to find an opinion of value in the appraisal process and through creating the report.
A home inspector analyzes the condition of the property and its main components and reports their findings.
