Myth: Assessed value generally will equate market value.
Reality: This usually isn't true; most states do support the suggestion that the assessed value is the same as market value, but not always.
Interior remodeling that the assessor is not aware of and a dearth of reassessment on nearby houses are perfect examples of why there might be a differential in price.
Myth: Depending on whether the appraisal is drawn up for the buyer or the seller, the value of the property will vary.
Reality: The appraiser has no vested interest in the result of the appraisal and should conduct his job with independence, objectivity and impartiality - no matter for whom the appraisal is provided.
Myth: The replacement value of the house will 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 home without being under duress from any outside party to purchase or sell.
The dollar amount necessary to reconstruct a house is what shows the replacement cost.
Myth: There are specific ways that real estate appraisers use to determine the opinion of value of a house, like the price per square foot.
Reality: An appraisal is an assertion of information based on the house's size, location, proximity to specific facilities, the condition of the house and the values of recent comparable sales. You can depend on dda's staff to be professional in assessing this information.
Myth: In a robust economy - when the values of properties in a given neighborhood are found to be rising by a particular percentage - the values of individual houses in the vicinity can be expected to rise by that same percentage.
Reality: The appreciation of a certain home has to be concluded on an individualized basis, factoring in information on comparable properties and other relevant elements.
It makes no difference whether the economy is good or bad.
Myth: The property's exterior is determinate of the expected price of the property; it is unnecessary to do an interior inspection.
Reality: Property value is concluded by a number of variables, including - but not limited to - location, condition, improvements, amenities, and market trends.
An outside-only inspection certainly can't provide all of the information necessary.
Myth: Because the consumer is the one who provides the money to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal belongs to them.
Reality: The appraisal report is, in fact, legally owned by the lending agency - unless the lender "releases its interest" in the report.
Home buyers have to be provided with a version of the report through request because of the Equal Credit Opportunity Act.
Myth: It doesn't mean anything to consumers what's in the appraisal report so long as it meets the necessities of their lending company.
Reality: It is almost imperative for home buyers to read a copy of their appraisal report so that they can double-check the accuracy of the report, in case it's required to question its accuracy. Remember, this is probably the most expensive and important investment a consumer will ever make.
An appraisal can serve as a record for the future, since it contains an exorbitant amount of data - including, but certainly 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: Appraisers are hired only to estimate home values in house sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and often do provide a series of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: A home inspection serves the same purpose as an appraisal.
Reality: An appraisal does not fulfill the same purpose as an inspection.
An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal.
The point of a home inspector is to approximate the condition of the home and its major components, then produce a report on their findings.