Myth: The value that is assessed by the appraiser will be equivalent to the market value.
Reality: While most states back the concept that assessed value approximates estimated market value, this generally is not the case.
Often when interior remodeling has occurred and the assessor is unaware of the improvement or other houses in the Winston-Salem have not been reassessed for quite some time, it may vary widely.
Myth: The buyer or the seller sometimes may have some pull in the value of the home depending upon for whom the appraiser is working.
Reality: There is no real interest on the part of the appraiser in the result of the appraisal, therefore he will complete his work with impartiality and independence, despite of for whom the appraisal is written.
Myth: Market value should mirror replacement cost.
Reality: Market value is acquired by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under duress to buy or sell.
Replacement cost is the dollar amount necessary to rebuild a home in-kind.
Myth: Specific methods, such as the price per square foot of the property, are the ways appraisers use to arrive at the value of a property.
Reality: There are many differing methods that an appraiser will use to make a full analysis of every factor in consideration of the home, such as the size, location, condition, how close it is to specific facilities and the sales prices of recently sold comparable homes.
Myth: As properties increase in value by a certain percentage - in a robust economic state - the houses in proximity are expected 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 houses.
It makes no difference if the economy is powerful or terrible.
Myth: Just seeing what the property looks like on its exterior gives an idea of its value.
Reality: To determine a solid value beyond all doubt, an appraiser must examine the house on a variety of factors based on location, condition, improvements, amenities, and market trends.
As you can see, none of these factors can be derived simply by looking at the property from the outside.
Myth: Since you're the one paying for the appraisal report when applying for the loan to purchase or refinance real estate, you own the provided 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.
However, consumers must be supplied with a copy of the appraisal upon written request, under the Equal Credit Opportunity Act.
Myth: It doesn't matter to consumers what's in the appraisal report so long as it meets the requirements of their lending company.
Reality: A consumer should definitely read through their appraisal; there might be some questions or some worries with the accuracy of the report that must be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
There is a great deal of information stored in an appraisal report that could be useful to the consumer in the future, such as 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: There is no reason to order an appraisal unless you are trying to get an assessment of the value of a property during a sales transaction involving a lending agency.
Reality: Appraisers can have many varied qualifications and designations which allow them to provide a series of different services including - but not limited to - advice on estate planning, tax assessment, zoning, dispute resolution in many different legal situations and cost analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: An appraisal report does not fulfill the same purpose as an inspection.
The job of the appraiser is to arrive at an opinion of value in the appraisal process and through creating the report.
A home inspector assesses the condition of the property and its main components and reports their findings.
