Myth: Assessed value will always be similar to market value.
Reality: While most states back the idea that assessed value equates estimated market value, this commonly is not the case.
Examples include when interior remodeling has happened and the assessor does not know about the improvements, or when houses in the vicinity have not been reassessed for an extended period of time.
Myth: The buyer or the seller sometimes may have an influence in the cost of the home depending upon for whom the appraiser is working.
Reality: The cost of the home does not affect the pay of the appraiser; as a result, the appraiser has no pressured interest in the value of the house. Obviously, he will complete his business with impartiality and independence regardless of for whom the appraisal is produced.
Myth: The replacement cost of the home is always in line with the market value.
Reality: Market value is acquired by what a willing buyer would likely pay a willing seller for a certain property, with neither being under pressure to buy or sell.
The replacement cost is the dollar amount required to reconstruct a property in-kind.
Myth: Specific formulae, like the price per square foot of the property, are the methods appraisers use to arrive at the value of a house.
Reality: An appraisal is a collection of information based on the home's size, location, proximity to undesirable facilities, the condition of the house and the values of recent comparable sales. You can rely on ASAP Appraisal Services, Inc.'s staff to be professional in assessing this data.
Myth: When the economy is robust and the sales prices of houses are found to be rising by a certain percentage, the other houses in the proximity can be expected to appreciate based on that same percentage.
Reality: The appreciation of a specific house is always determined on a case-by-case basis, factoring in information on comparable houses and other relevant considerations.
It doesn't matter if the economy is on the rise or declining.
Myth: Just examining what the property looks like on its exterior gives a good idea of its value.
Reality: There are a number of different variables that show property value; these factors include location, condition, improvements, amenities, and market trends.
An exterior inspection certainly can't provide all of the information required.
Myth: Because the consumer is the party who provides the funding to pay for the appraisal when applying for a loan for any real estate transaction, legally the appraisal report belongs to them.
Reality: Unless a lending agency releases its vestment in the report, it is legally owned by the lending agency that ordered the appraisal.
Home buyers have to be given a copy of the document through request as per the Equal Credit Opportunity Act.
Myth: There's no point for consumers to even concern themselves with what the report contains so long as their lending agency is fine with the contents therein.
Reality: A consumer should definitely inspect their appraisal report; there might be some questions or some worries with the accuracy of the appraisal report that should be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make.
Also, the appraisal makes an excellent record for future reference, containing useful and often-revealing information - 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 vicinity.
Myth: There is no reason to hire an appraiser unless you are trying to get an estimate of the value of a property during a sales transaction involving a lending institution.
Reality: Depending upon their qualifications and designations, appraisers can and often do perform a lot of different services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.
Myth: There's no need to get an appraisal if you order a home inspection.
Reality: A home inspection has a completely different purpose than an appraisal.
The purpose of the appraiser is to find an opinion of value in the appraisal process and through writing the report.
A home inspector assesses the condition of the house and its major components and reports these findings.
