Myth: Assessed value generally will equate to market value.
Reality: While most states support the concept that assessed value is equal to estimated market value, this usually is not the case.
Examples include when interior remodeling has occurred and the assessor does not know about the improvements, or when houses in the area have not been reassessed for an prolonged period.
Myth: Depending on whether the appraisal is written for the buyer or the seller, the value of the property will vary.
Reality: There is no personal interest on the part of the appraiser in the result of the appraisal report, therefore he will complete his work with impartiality and independence, no matter of for whom the appraisal is created.
Myth: Market value should equal replacement cost.
Reality: Market value is found by what a willing buyer would be interested in paying a willing seller for a particular property, with neither being under pressure to buy or sell.
The replacement cost is the dollar amount required to reconstruct a house in-kind.
Myth: Specific methods, like the price per square foot, are the ways appraisers use to come to the cost of a home.
Reality: An appraisal is an amalgamation of data concluded from the house's size, location, proximity to certain facilities, the condition of the house and the value of recent comparable sales. You can depend on 3C Appraisals, Inc.'s staff to be forthright in assessing this data.
Myth: In a strong economy - when the sales prices of homes in a given area are reported to be rising by a certain percentage - the costs of individual houses in the area can be expected to appreciate by that same percentage.
Reality: All appreciation of worth is on a one-on-one basis, determined by information on relevant elements and the data of comparable properties.
This is true in fair economic times as well as poor.
Myth: You can often find what a house is worth simply by looking at the outside.
Reality: Home value is determined by a number of factors, including area, condition, improvements, amenities, and market trends.
As you can see, none of these variables can be derived just by examining the property from the outside.
Myth: Considering that the consumer is the one who provides the capital to pay for the appraisal when applying for a loan for any real estate transaction, by law the appraisal report belongs to them.
Reality: Legally, the document is owned by the lending company unless the lender releases their interest in the document.
Home buyers have to be supplied with a version of the report upon written request as per the Equal Credit Opportunity Act.
Myth: Consumers need not care about what is in their appraisal report so long as it meets the necessities of their lending company.
Reality: A consumer should definitely look through their appraisal; there will probably be some questions or some worries about the accuracy of the inspection that need to 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 area.
Myth: The only reason someone would order an appraisal is if a house needs its cost assessed in a lender sales transaction.
Reality: Hiring an appraiser can fulfill a variety of wants 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: An appraisal report is the same as a home inspection report.
Reality: An appraisal does not serve the same purpose as an inspection.
An appraiser concludes on an opinion of value in the appraisal process and resulting appraisal report.
House inspectors will write a report that will express the condition of the property and its major components and possible damage.
